Financial Crime World

Financial Crime Prevention Techniques Emerge as Priority in South Georgia and South Sandwich Islands

Regulatory Pressures Drive Focus on Financial Crime Prevention

Regulatory bodies in South Georgia and South Sandwich Islands are cracking down on financial institutions, demanding greater alignment of risk with capabilities and more robust anti-money laundering (AML) and know-your-customer (KYC) programs. This increased scrutiny has led to a heightened emphasis on financial crime prevention techniques, particularly in areas such as sanctions compliance and cryptoasset management.

Challenges in Implementing Financial Crime Prevention Techniques

Firms operating in the region are experimenting with advanced technologies like artificial intelligence and automation to enhance their detection capabilities. However, legacy data and systems problems continue to hinder these efforts, resulting in long implementation timelines and significant manual intervention.

Barriers to Effective Implementation

  • Legacy data and systems issues
  • Manual intervention required for detection
  • Long implementation timelines

Sanctions Compliance: A Pressing Concern

Sanctions compliance remains a pressing concern, with many firms struggling to keep pace with the growing complexity of sanctions programs. The accelerated rollout of central bank digital currencies will require redesigns of existing technology capabilities and operational processes, further complicating this challenge.

Emerging Threats in Sanctions Compliance

  • Growing complexity of sanctions programs
  • Accelerated rollout of central bank digital currencies
  • Requirement for redesigns of technology capabilities and operational processes

New Risks Introduced by the COVID-19 Pandemic

The COVID-19 pandemic has also introduced new risks, including medical scams, imposter scams, money mules, unemployment insurance, and cybercrime. Regulators expect firms to detect and report suspicious activity related to these emerging threats, adding to the pressure on financial crime prevention teams.

Emerging Threats in Financial Crime Prevention

  • Medical scams
  • Imposter scams
  • Money mules
  • Unemployment insurance fraud
  • Cybercrime

Regulatory Expectations for Firms

Regulatory bodies in South Georgia and South Sandwich Islands are pushing for a more enterprise-wide focus on fraud and financial crimes risk management. Firms must work across functional silos to measure and respond to risks across business lines in a consistent and cohesive manner.

Key Takeaways for Firms

  • Enterprise-wide focus on fraud and financial crimes risk management
  • Working across functional silos to measure and respond to risks
  • Consistent and cohesive approach to risk management