Financial Crime World

Financial Crime Prevention Tools and Technologies in China: Experts Anticipate a Paradigm Shift

As financial crime continues to pose a significant threat to global economies, experts are warning that regulators and financial institutions must adapt to new and emerging technologies to prevent, detect, and deter this activity. A report by KPMG brings together 16 global thought leaders to discuss the future of financial crime prevention in China.

A Call to Action

The report identifies six major trends influencing financial crime compliance over the next five to ten years, including a shift towards a purpose-led approach, risk-based decision-making, and strategic data sharing. Experts also emphasize the importance of perpetual-KYC, machine learning, and artificial intelligence in combating financial crime.

Key Takeaways

  • A purpose-led approach prioritizes reducing harm caused by crime and terrorism
  • Risk-based decision-making and strategic data sharing are crucial for future progress
  • Perpetual-KYC, machine learning, and AI are essential tools in combating financial crime

Experts Weigh In

Quotes from Industry Experts

  • “To make progress, we need to come back to why we do this,” says David Lewis, former Executive Secretary of the Financial Action Task Force (FATF). “This is not just about financial integrity – it’s about reducing the harm caused by crime and terrorism. Full stop.”
  • “The explosion of public-private partnerships and working together to analyse different sources of information will be the key to future progress in combatting financial crime,” adds John Moss, Deputy CEO Intelligence at AUSTRAC.
  • “Everything to do with AML is about data, but the data is useless without the technology to use it,” notes Alexon Bell, Chief Product Officer at Quantexa.

Steps Towards Transformation

To combat financial crime, organizations can take six steps:

1. Define a Target State Operating Model

  • Enable teams to act tactically while thinking strategically
  • Develop a clear understanding of the desired future state

2. Digitise the KYC Process

  • Improve data quality and enhance compliance
  • Automate manual processes for increased efficiency

3. Augment Rules-Based Engines with Intelligence-Led Analytics Tools

  • Target complex and intelligent scenarios
  • Enhance decision-making with advanced analytics capabilities

4. Data Aggregation Accelerates Effective Financial Crime Systems

  • Know that data does not have to be perfect
  • Focus on extracting insights from available data sources

5. Transformation is a Continuous Journey

  • Avoid locking into fixed timeframes or roadmaps
  • Emphasize ongoing improvement and adaptation

6. Financial Crime Operations Teams are Key to Success

  • Improve effectiveness and efficiency through strategic prioritization
  • Leverage expertise and technology for enhanced outcomes

KPMG’s Expertise

KPMG’s Financial Crime transformation team has the expertise and tools to set organizations up for success, including:

Developing Strategic Roadmaps

  • Create tailored plans for financial crime prevention and compliance

Implementing Global Perpetual KYC Solutions

  • Enhance data quality and compliance through automated processes

Executing Technology Strategies

  • Support the utilization and development of existing and future data
  • Drive innovation and improvement in financial crime operations