Financial Crime World

Adapting to the Evolving Landscape of Financial Crime

As financial institutions (FIs) continue to navigate the complexities of an increasingly interconnected world, it is essential that they prioritize their financial crime programs. In this article, we will discuss the importance of investing in financial crime prevention, fostering collaboration with regulatory bodies, and continually enhancing risk management frameworks.

The Need for a Robust Approach

In today’s era of technological advancements, regulatory scrutiny, and growing interconnectedness, FIs must adopt a robust and adaptive approach to combating financial crimes. This requires a multifaceted strategy that includes:

Prevention and Detection

  • Internal Fraud: Implement policies to prevent employee misuse of data, such as logging out and preventing password sharing.
  • IT Administrators: Mandate the use of individual credentials by IT administrators, creating an audit trail, and regularly reviewing user access profiles.

Advanced Technology

  • Artificial Intelligence (AI) and Machine Learning (ML): Deploy AI/ML tools to identify and prevent internal fraud.

Collaboration with Regulatory Bodies

  • FIs should foster collaboration with regulatory bodies to stay ahead of emerging threats and trends.

Risk Management Frameworks

  • Continuously enhance risk management frameworks to adapt to the changing financial crime landscape.

A Forward-Thinking Response

As 2024 unfolds, the ever-evolving landscape of financial crime necessitates a dynamic response from FIs. By investing in their financial crime program, fostering collaboration with regulatory bodies, and continually enhancing their risk management frameworks, FIs can reinforce the financial sector against persistent threats of fraud, money laundering, and cybercrime.

About the Authors

The authors of this article are experts in the field of financial crimes and fraud solutions. They include:

  • Tyler Langenkamp, Managing Director at Treliant
  • Efren Marquez Alba, Engagement Director with Treliant
  • Daniel Lane, Director with Treliant
  • Conor Stanhope, Senior Manager in Treliant’s Financial Crimes and Fraud Solutions practice

About The Pulse

This article is part of Treliant’s quarterly newsletter, The Pulse, which offers insights and information regarding pertinent issues affecting the financial services industry.