Emerging Trends in Financial Crime in Malta

As technology continues to evolve at a rapid pace, so too do the tactics used by criminals to launder money and finance terrorism. The recent emergence of artificial intelligence (AI) and deepfake technology has raised concerns about their potential use in financial crimes.

Challenges Posed by Emerging Technologies

Artificial Intelligence: AI systems like ChatGPT can spread misinformation, making it crucial for anti-money laundering (AML) subject persons to verify the accuracy of online sources.
Deepfake Technology: This technology can create convincing fake content, which has significant implications for AML subject persons. It highlights the need for awareness and mitigation strategies.

Risks Associated with New Technologies

Blockchain Anonymity: While blockchain technology has the potential to revolutionize transactions, its anonymity can also make it vulnerable to misuse.
- Privacy Coins: These coins obscure transaction details on the blockchain, raising concerns about their potential use in money laundering and terrorist financing.
- Non-Fungible Tokens (NFTs): NFTs’ subjective value and ease of manipulation make them susceptible to misuse for financial crimes.

Mitigating Risks

To stay ahead of these emerging trends, AML subject persons should:

Identify and understand the risks posed by new technologies
Design mitigating controls to address corresponding risks
Ensure employees are adequately trained to detect and prevent financial crimes

Expert Assistance

Deloitte’s team is experienced in financial crime risk management and compliance. We can assist subject persons in setting up frameworks to mitigate these risks, ensuring they remain compliant with regulations while protecting their business from financial crime.

By staying informed about emerging trends and taking proactive steps, AML subject persons can safeguard their business against the evolving threats of financial crime.