Financial Crime World

Financial Crime Prevention in Anguilla: Emerging Risks and a Call to Action

Introduction

The Caribbean island nation of Anguilla is not immune to the growing threat of financial crime. As global financial institutions face increasing sophistication from cyber threats, corruption, and other forms of illicit activity, regulators and businesses on the island are under pressure to adapt their strategies for preventing, detecting, and deterring these crimes.

A recent study by a panel of international experts highlights six major trends influencing financial crime compliance in the next 5-10 years:

  • Defining Success: Emphasizing the importance of understanding what constitutes success in fighting financial crime, with a focus on agreed threats under a risk-based approach.
  • Strategic Data Sharing: Harnessing the power of public-private partnerships and data analysis to disrupt criminal activity.
  • Perpetual KYC and CDD: Implementing ongoing customer due diligence and know-your-customer processes to stay ahead of evolving threats.
  • Machine Learning and AI: Leveraging artificial intelligence and machine learning for complex decision-making in financial crime prevention.
  • Complete, Accurate, and Timely Data: Emphasizing the critical role of data in fighting financial crime, with integrated technology solutions supported by a clear strategy.

Addressing Emerging Risks in Anguilla

To address these emerging risks, businesses and regulators in Anguilla can take six key steps:

  1. Define a Target Operating Model: Establishing a strategic framework for tackling financial crime.
  2. Digitize the KYC Process: Improving data quality and compliance through technology-driven solutions.
  3. Augment Rules-Based Engines with Intelligence-Led Analytics Tools: Enhancing decision-making capabilities to tackle complex scenarios.
  4. Data Aggregation: Accelerating effective financial crime systems while acknowledging that data does not need to be perfect.
  5. Transformation is a Continuous Journey: Recognizing the importance of ongoing evolution and adaptation in fighting financial crime.
  6. Financial Crime Operations Teams are Key: Empowering these teams with the necessary expertise and resources.

Expertise and Tools for Financial Crime Transformation

KPMG’s Financial Crime Transformation team offers expertise and tools to support organizations in Anguilla in addressing these emerging risks, including:

  • Developing strategic roadmaps for transformation
  • Implementing global perpetual KYC solutions
  • Designing technology strategies and operating models for financial crime prevention
  • Providing insights on innovative customer monitoring