Financial Crime World

Here is the rewritten article in markdown format:

Financial Crime on the Rise in Bhutan: Trends to Watch in 2023

Thimphu, Bhutan - February 2023

As the global economy continues to grapple with uncertainty and volatility, financial crime is poised to surge in Bhutan and around the world. A new report by [Author’s Name] reveals that 59% of firms in Bhutan expect an increase in financial crime levels, while 58% plan to hire more staff to combat the issue.

Environmental Crime on the Rise

Top Concern for Compliance Teams

One of the top concerns for compliance teams in Bhutan is environmental crime, which has seen a significant surge in recent years. The report notes that environmental crime was the second-highest typology of concern for firms when submitting suspicious activity reports (SARs).

  • 62% of firms reported an increase in environmental crime related to:
    • Deforestation and land degradation
    • Wildlife trafficking
    • Pollution and waste management

Crowdfunding Fuels Political Extremism

Increasing Use of Platforms

Another trend to watch in 2023 is the increasing use of crowdfunding platforms by individuals and groups to support political extremism. According to the report, 87% of compliance teams have seen an increase in the use of these platforms over the past year.

  • Key statistics:
    • 71% of firms reported an increase in crowdfunding-related activity
    • 45% of firms saw a significant rise in donations through social media

Regulatory Landscape Unfolds in Bhutan

New Anti-Money Laundering Regulations

In Bhutan, the regulatory landscape for financial crime is evolving rapidly. The report notes that the government is preparing to introduce new anti-money laundering regulations, which will require firms to enhance their compliance procedures and risk management practices.

  • Key highlights:
    • Strengthened due diligence requirements
    • Enhanced customer identification and verification processes
    • Increased penalties for non-compliance

Firms Rethink Approach to Regulatory Technology

Digitally Transforming Legacy Systems

As the compliance function continues to evolve, firms in Bhutan are rethinking their approach to regulatory technology. The report notes that 39% of firms said digitally transforming legacy systems was their most significant compliance-related pain point, six percentage points higher than two years ago.

  • Key statistics:
    • 53% of firms plan to invest in cloud-based solutions
    • 45% of firms will focus on implementing artificial intelligence (AI) and machine learning (ML) capabilities

Expert Insights

Andrew Davies, Global Head of Regulatory Affairs at ComplyAdvantage

“2023 will be a complex year for compliance professionals in Bhutan. We highlight areas such as financing terrorist groups through decentralized platforms and environmental crime, where trends have accelerated during the pandemic.”

The report provides valuable insights into the financial crime landscape in Bhutan and around the world, offering guidance on how firms can prepare effectively for the challenges ahead.

Download the Full Report

State of Financial Crime 2023

To read more about the trends shaping today’s financial landscape and their implications for the year ahead, download the full report.