Financial Crime World

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Financial Crime Trends 2023 in Svalbard and Jan Mayen: Experts Weigh In on Emerging Threats

As financial institutions navigate the complex landscape of regulatory requirements, emerging technologies, and evolving social, environmental, and economic climates, experts are sounding the alarm on rising financial crime trends.

The Fight Against Financial Crime Matters

KPMG thought leaders have explored the views on why the fight against financial crime matters, gauged the current climate, and identified shifts or changes in the future of financial crime required to move forward with purpose.

  • Dynamic KYC Requirements: With complex criminal threats on the rise, firms must adapt to ever-changing regulations while battling labor costs and pressure to reduce overhead.
  • Sophisticated Fraud Schemes in Digital Payments: As more people turn to online transactions, cyber-attacks, fraud surges, and new digital payment types have become a growing concern.

The Rise of Digital Assets and Cryptocurrencies

The rise of digital assets and cryptocurrencies has also led to increased risks involving financial crimes. Virtual Asset Service Providers (VASPs) face heightened risks due to inadequate controls, weak customer due diligence, and failures in sanctions monitoring. Additional anti-money laundering risks continue to evolve for Peer-to-Peer (P2P) and Decentralized Finance (DeFi) Service Providers, Non-Fungible Token (NFT) Marketplaces, and Traditional Financial Institutions.

Automating Anti-Money Laundering

Automating Anti-Money Laundering (AML) is also becoming increasingly important as three fundamental reasons to invest in financial crime automation strategies: cost takeout, customer experience, and risk aversion. By providing examples of Financial Crimes automation and technology, experts prove that automation benefits significantly outweigh the costs … and risks.

Staying Ahead of Emerging Threats

As financial institutions strive for the highest level of integrity, they must manage the cost and risk of litigation, investigations, and regulatory enforcement actions. Experts recommend taking a proactive approach to addressing these challenges and investing in financial crime automation strategies to stay ahead of emerging threats.

Managed Services for Financial Crime Compliance

In related news, KPMG Forensic offers managed services for financial crime compliance, helping organizations achieve their goals while navigating complex regulatory requirements. With expert guidance, firms can stay ahead of the curve and mitigate risks associated with financial crimes.

Experts Weigh In

  • Daniel Boylan, Principal at KPMG US: “With the increasing complexity of regulations and emerging technologies, it’s more crucial than ever for financial institutions to take a dynamic approach to risk management and stay ahead of the curve.”

By investing in financial crime automation strategies and staying proactive, firms can mitigate risks and achieve their goals while maintaining the highest level of integrity.