Financial Crime World

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Financial Crime Trends in Mayotte: Shifting Landscape

As the global economy continues to evolve, financial crime trends in Mayotte are also shifting. According to a recent report by KPMG, regulatory challenges in 2023 will be shaped by emerging technologies, geopolitical events, and interconnected financial networks.

Regulatory Focus

Fraud and financial crimes are ongoing risks that financial service providers must continually mitigate. Regulators will focus on areas such as:

  • Terrorist financing
  • Beneficial ownership
  • Sanctions evasion
  • Consumer scams
  • Compliance violations

Key priorities include:

  • Anti-money laundering (AML) and counter-terrorism financing (CFT) frameworks
  • Insider corruption
  • Cybercrime
  • Robust cybersecurity risk management

New Regulatory Areas of Focus

New regulatory areas of focus include:

  • Crypto and digital assets
  • NFTs
  • DeFi platforms

Regulators will combat threats and vulnerabilities posed by these technologies, strengthening financial safeguards and enforcing non-compliance with existing regulations.

Interplay with Consumer Protection

Regulators will also assess companies’ consumer compliance regulations, including:

  • Fair processing and treatment of consumer complaints, claims, and disputes
  • Clarity of consumer communication
  • Account holds and freezes
  • Payment sender/receiver authentication procedures
  • Oversight and monitoring of synthetic identity fraud
  • Implementation of risk programs to identify and mitigate fraud/scams directed at vulnerable populations

Evolving Risks

Regulators face the challenge of mitigating complex and evolving risks that may threaten national security, including:

  • Domestic and international terrorist financing
  • Increased focus on Office of Foreign Assets Control (OFAC) and sanctions
  • Transnational criminal organizations
  • Drug and human trafficking
  • Smuggling
  • Proliferation financing
  • Synthetic identity fraud

Companies and Boards

Companies and their boards will be expected to enhance risk and compliance frameworks for effective oversight and governance in areas such as:

  • Anti-bribery and corruption
  • Competitive behavior
  • Lobbying and political involvement
  • Code of conduct compliance with evolving and expanding rules and regulations

Fintech and Payments Companies

For fintech and payments companies, combating fraud, money laundering, and related financial crimes is crucial. Companies should consider ways to responsibly leverage technology and data to monitor activity, coupled with a deep focus on customer experience and instilling a strong culture of doing the right thing.

Experts’ Insights

“We need to ensure that we are protecting our customers by combating fraud, money laundering, and related financial crimes on our platforms,” said Fiachre O’Neill, Chief Risk & Compliance Officer at PayPal. “Companies should consider ways to responsibly leverage technology and data to monitor activity, coupled with a deep focus on customer experience—being proactive and identifying trends, and instilling a strong culture of doing the right thing.”

Mitigating Risk

To mitigate risk, companies should:

  • Add analytics and automation to client onboarding
  • Eliminate antiquated technology
  • Establish a mature conduct risk program
  • Strengthen controls in regulatory focal areas

About KPMG Regulatory Insights

KPMG Regulatory Insights is the thought leader hub for timely insight on risk and regulatory developments. Get the latest perspectives on evolving supervisory, regulatory, and enforcement trends.