Financial Crime Trends and Predictions in Chad: Experts Anticipate a Paradigm Shift
The fight against financial crime is becoming increasingly sophisticated, with new technologies being used to exploit financial systems. In Chad, where financial institutions are under immense pressure to prevent, detect, and deter criminal activity, regulators and financial institutions must innovate and promote a culture of compliance.
Predictions for the Next Decade
A recent report has brought together the views of 16 global thought leaders in the field of financial crime, who predict that the next decade will see a fundamental shift in how organisations approach compliance. This paradigm shift is expected to be influenced by six major trends:
1. Purpose-led Approach
Organisations must focus on disrupting criminal activity for the good of their customers, community, and business.
- Prioritize customer satisfaction and community impact
- Align business goals with financial crime prevention efforts
2. Risk-based Approach
Defining what success looks like and focusing on agreed threats will be crucial in this new era.
- Identify and assess potential risks
- Develop strategies to mitigate and manage risk
3. Strategic Data Sharing
Public-private partnerships and the analysis of different sources of information will be key to future progress in combatting financial crime.
- Collaborate with public and private sector entities
- Share data and intelligence to improve financial crime prevention efforts
4. Perpetual-KYC and Real-time Monitoring
The use of technology will become increasingly important in maintaining accurate and up-to-date customer information.
- Implement digital KYC processes
- Use real-time monitoring tools to detect suspicious activity
5. Machine Learning and Artificial Intelligence
Complex decision-making will rely on the deployment of these technologies.
- Leverage machine learning algorithms to analyze data
- Use artificial intelligence to automate detection and prevention efforts
6. Complete, Accurate, and Timely Data
Integrated technology solutions supported by a clear strategy will be essential.
- Implement integrated technology systems
- Develop strategies to ensure accurate and timely data
Key Steps to Combat Financial Crime
To combat financial crime effectively, organisations must take six key steps:
1. Define a Target State Operating Model
Enable teams to act tactically while thinking strategically.
- Develop a clear operating model
- Align team goals with organisational objectives
2. Digitise the KYC Process
Improve data quality, enhance compliance, and improve outcomes.
- Implement digital KYC processes
- Use technology to automate and streamline KYC efforts
3. Augment Rules-based Engines with Intelligence-led Analytics Tools
Target complex and intelligent scenarios.
- Leverage machine learning algorithms to analyze data
- Use artificial intelligence to automate detection and prevention efforts
4. Data Aggregation Can Accelerate Effective Financial Crime Systems
Know that data does not have to be perfect.
- Implement integrated technology systems
- Develop strategies to ensure accurate and timely data
5. Transformation is a Continuous Journey
Should not be locked into a fixed timeframe.
- Develop a clear transformation roadmap
- Prioritise continuous improvement and innovation
6. Financial Crime Operations Teams Are Key to Improving Effectiveness and Efficiency
- Develop a clear operating model
- Align team goals with organisational objectives
Expertise from KPMG
KPMG’s Financial Crime transformation team has the expertise and tools to help organisations in Chad navigate this paradigm shift. Our services include:
Developing Strategic Roadmaps Based on Key Pillars and Design Principles
- Develop a clear transformation roadmap
- Prioritise continuous improvement and innovation
Implementing Global Perpetual KYC Solutions
- Implement digital KYC processes
- Use technology to automate and streamline KYC efforts
Developing and Executing Technology Strategies and Operating Models
- Develop a clear operating model
- Align team goals with organisational objectives
Providing Expertise on the Right Tools, Technology, Strategy, Analytics, and Data
- Implement integrated technology systems
- Develop strategies to ensure accurate and timely data
Offering Global Better Practice Insights and Intelligence
- Leverage machine learning algorithms to analyze data
- Use artificial intelligence to automate detection and prevention efforts
By working with KPMG, organisations in Chad can set themselves up for success in this new era of financial crime compliance.