Financial Crime World

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Fintech Boom Sparks Concerns Over Financial Crime Risks in Indonesia

As Indonesia continues to experience rapid growth in its fintech industry, concerns are rising over the potential for increased financial crime risks. The country’s digital payment market has seen significant expansion in recent years, with mobile transactions increasing by 60% between 2020 and 2022.

The Growing Concerns

However, this growth also brings new challenges for regulators and financial institutions to prevent and detect financial crimes such as money laundering, terrorist financing, and cyber attacks. The increasing complexity of these threats requires a robust response from the industry to protect consumers and maintain trust in the financial system.

Financial Institutions Struggle to Keep Up

Indonesia’s financial institutions are facing a daunting task in building and maintaining robust anti-money laundering (AML) and know-your-customer (KYC) systems. The complex regulatory environment requires them to invest heavily in technology and personnel to prevent financial crimes.

  • Challenges of AML/KYC Implementation: Most Indonesian financial institutions still face significant challenges in controlling operational risks related to financial crime.
  • Customer Expectations: Despite the growing demand from customers for a better customer experience through streamlined digital interactions, many institutions struggle to meet these expectations while maintaining robust AML/KYC systems.

EY Leads Financial Crime Transformation

Global consulting firm EY has emerged as a leader in anti-money laundering and know-your-customer services, providing integrated solutions to Indonesian financial institutions. The company’s tax transformation team also helps clients identify sustainable tax function improvements and innovation.

Global Reach and Scale

  • Regulatory Network: With a global regulatory network of 3,600 professionals who focus on financial crime, EY connects jurisdictions around the world and provides insights to financial institutions and regulators.
  • Technology-Enabled Offerings: The company’s technology-enabled offerings deliver increased effectiveness and efficiency for financial institutions as they manage the many risks of financial crime.