Financial Crime World

Financial Crimes on the Rise: What Businesses Can Do

The digital age has brought about an unprecedented level of ease in conducting transactions, but it has also opened up new avenues for money laundering and other financial crimes. As a result, businesses must be proactive in implementing robust Financial Crime Compliance (FCC) measures to protect themselves from these threats.

The Reality of Financial Crimes

According to PwC’s Global Economic Crime and Fraud Survey, an alarming 51% of organizations have fallen victim to fraud on e-commerce platforms. This highlights the need for businesses to take a proactive approach in preventing and detecting financial crimes.

Best Practices for Preventing and Detecting Financial Crimes

Implementing the following best practices can help businesses stay ahead of financial crime threats:

Conduct Regular Risk Assessments

  • Tailor your business’s FCC framework to specific risks by identifying, assessing, and understanding various financial crime risks.
  • Stay up-to-date with emerging trends and adapt your FCC strategies accordingly.

Implement Effective KYB Procedures

  • Verify business customers with thorough Know Your Business (KYB) and Know Your Customer (KYC) procedures to minimize the chance of financial crime.

Develop Strong AML and CTF Programs

  • Embed effective systems and controls to detect, prevent, and report suspicious activities.
  • Equip employees with knowledge of financial crime risks, regulatory requirements, and responsibilities in detecting and reporting suspicious activities.

Use Transaction Monitoring Systems

  • Detect unusual or suspicious transaction patterns that could indicate money laundering or other financial crimes.
  • Stay informed of emerging trends and adapt FCC strategies accordingly to mitigate new threats and improve compliance.

Conduct Regular Training

  • Equip employees with knowledge of financial crime risks, regulatory requirements, and responsibilities in detecting and reporting suspicious activities.
  • Identify areas for improvement, speed up processes, and safeguard clients and business growth through regular independent audits and reviews.

Educate Customers

  • Share information about financial crime risks and prevention to enable them to report fraud or suspicious activities if it happens to them.
  • Stay informed of emerging trends and adapt FCC strategies accordingly to mitigate new threats and improve compliance.
  • Embed effective systems and controls to detect, prevent, and report suspicious activities.