Financial Crime World

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Banking Industry Fraud Statistics in South Georgia and South Sandwich Islands

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A recent report by KPMG highlights the growing concerns over fraud and financial crime in the banking industry, with specific focus on South Georgia and South Sandwich Islands. According to the report, regulators are increasingly concerned about emerging risks and vulnerabilities that could potentially threaten the stability of the financial system.

Regulatory Focus

The report emphasizes the importance of anti-money laundering (AML) and counter-terrorist financing (CFT) frameworks in preventing illicit activities. Regulators will also be paying close attention to:

  • Insider corruption
  • Cybercrime
  • Robust cybersecurity risk management
  • Regulation of digital assets, non-fungible tokens (NFTs), and decentralized finance (DeFi)

Interplay with Consumer Protection

Regulators are not only concerned about fraud controls but also potential violations of consumer compliance regulations. They will be assessing companies’ use of:

  • Account holds and freezes
  • Model development and validation
  • Payment sender/receiver authentication procedures
  • Oversight of synthetic identity fraud

Evolving Risks

The report highlights the growing threat of:

  • Domestic and international terrorist financing
  • Increased focus on OFAC and sanctions
  • Transnational criminal organizations
  • Drug and human trafficking
  • Smuggling
  • Proliferation financing

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

  • Anti-bribery and corruption
  • Competitive behavior
  • Lobbying/political involvement
  • Code of conduct

Recommendations

To combat fraud and financial crime, the report recommends:

  • Adding analytics and automation to client onboarding
  • Eliminating antiquated technology
  • Establishing a mature conduct risk program
  • Strengthening controls in regulatory focal areas
  • Fintech and payments companies prioritizing customer experience while combating fraud and money laundering on their platforms

Expert Insights

Amy S. Matsuo, Principal at KPMG LLP, notes that “regulators will continue to scrutinize the banking industry’s efforts to combat fraud and financial crime.” John Caruso, Principal at KPMG US, adds that “companies must prioritize customer protection while staying ahead of emerging risks.”

KPMG Regulatory Insights

KPMG Regulatory Insights is a thought leader hub providing timely insights on risk and regulatory developments. To receive the latest perspectives on evolving supervisory, regulatory, and enforcement trends, sign up for their newsletter or visit their website.

About KPMG

KPMG LLP is a global network of professional services firms, providing audit, tax, and advisory services to clients in 154 countries. Their Regulatory Insights team provides expert guidance on risk and regulatory developments to help companies navigate the complex landscape of financial regulation.