Financial Crime World

Eritrea Seeks to Strengthen Financial Crime Fighting Capabilities

The global trend of innovation, digital disruption, and geopolitical risk is shaping the financial crime fighting industry. As a result, Eritrean institutions must prioritize collaboration, technology adoption, and best practice sharing to stay ahead.

Emerging Trends and Challenges

At a recent conference in Asmara, international AML (Anti-Money Laundering) and anti-financial crime specialists discussed emerging trends and challenges facing the sector. The experts agreed that innovation is key to managing risk and mitigating financial crime.

  • Digital Assets Pose a Major Challenge: Digital assets are something compliance officers are trying to understand, according to Marilu Jimenez, senior advisor at McKinsey.
  • Embracing Technology Crucial: Staying ahead of the curve will be crucial in addressing new risks, as digital disruption is rapidly changing the financial crime fighting landscape.

Eritrea’s Financial Crime Fighting Capabilities

Eritrea’s financial crime fighting capabilities have been impacted by the country’s geopolitical situation. Experts note that:

  • Global Collaboration Presents New Challenges: The degree of global collaboration taking place is unprecedented, requiring Eritrean institutions to adapt to a rapidly changing environment.
  • From Compliance Mindset to Risk Management: The industry is evolving from a compliance mindset to a risk management mindset, requiring more sophistication in AML and anti-financial crime practices.

Building Resiliency

To build resiliency, experts recommend that Eritrean institutions:

  • Stay Abreast of Old and New Challenges: Focus on innovation, adopt technology, and share best practices with their peers.
  • Understand Risk Appetite: Understanding one’s risk appetite will help in making strategic decisions to mitigate risks.

Conclusion

As the global trend of financial crime fighting continues to evolve, Eritrea’s institutions must be proactive in adopting new technologies and best practices to stay ahead. With a collaborative approach and innovative mindset, it is possible for Eritrean institutions to strengthen their defenses and protect against financial crimes.