Financial Crime World

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Financial Crime Trends and Predictions in Samoa for 2024: A Glimpse into the Future

The financial sector in Samoa is bracing itself for a slew of emerging trends that will shape the fight against financial crime in the year ahead. As the country’s economic landscape continues to evolve, regulators and industry players are anticipating a significant shift in the way financial institutions operate.

Operational Efficiency and Effectiveness: A Top Priority

One area that will see increased focus is operational efficiency and effectiveness. With the rising cost of compliance weighing heavily on financial institutions, many firms are investing in:

  • False positive reduction
  • Digital transformation
  • Cloud migration
  • AI integration
  • Vendor consolidation

to reduce waste and improve risk orchestration.

Economic Crime Plan: A New Framework for Collaboration

The new Economic Crime Plan, set to run until 2026, has brought about significant government investment in technology and fraud and AML experts. This plan aims to establish a framework for law enforcement agencies to work more closely with:

  • The private sector
  • Trade associations
  • Big tech

facilitating easier exchange of expertise, data, and technology.

Know Your Customer (KYC) and Perpetual KYC

In terms of Know Your Customer (KYC), 2024 may see the emergence of perpetual KYC as a widespread practice. However, this development is not without its challenges, particularly in light of the unpredictable nature of sanctions screening since 2022. As such, firms will need to:

  • Prioritize stress-testing their screening and compliance processes against future risks

Know Your Business (KYB): A Growing Trend

The rapid rise of Know Your Business (KYB) shows no signs of slowing down either. With the UK’s Economic Crime and Corporate Transparency Act set to vastly improve data available on UK registered corporations, KYB processes must incorporate:

  • Sophisticated technology to analyze hidden structures and ownership

Better Data Aggregation and Analysis: The Way Forward

Better data aggregation and improved analysis are also expected to drive progress in 2024. Many firms will continue to run digital transformation programmes to combine their data sources, address data gaps, and optimize infrastructure spend. The Act’s provision for greater data sharing will facilitate collaboration between the public and private sectors.

AI and Analytics: Crucial Roles in Alert Remediation and Data Interpretation

According to industry experts Nina Kerkez and Katarina Pranjic of LexisNexis Risk Solutions, AI and analytics will play crucial roles in:

  • Alert remediation
  • Data interpretation

However, they caution that prioritizing quality over quantity is essential for effective screening.

Conclusion: A Collaborative Effort Against Financial Crime

As Samoa’s financial sector prepares for these emerging trends, it is clear that the fight against financial crime will require a collaborative effort between regulators, industry players, and technology providers.