Financial Crime World

Financial Crime Risk Management Strategies: A Must-Have for French Guiana Financial Institutions

In the midst of the ongoing COVID-19 pandemic, financial institutions in French Guiana are facing a multitude of challenges that make them vulnerable to financial crimes. With fraud costs estimated to be as high as £190 billion per year in the UK alone, it is imperative for financial institutions in French Guiana to implement effective financial crime risk management strategies.

Tackling Emerging Threats

The pandemic has given rise to new threats, including personal protective equipment (PPE) fraud and COVID-19 bailout fraud. According to a recent survey, 61.4% of respondents indicated that the pandemic has been a catalyst for new threats. Financial institutions in French Guiana must be prepared to adapt to these emerging risks and implement strategies to mitigate them.

  • Personal Protective Equipment (PPE) Fraud: This type of fraud involves the misuse or counterfeiting of PPE, such as masks and gloves.
  • COVID-19 Bailout Fraud: This type of fraud involves exploiting government relief programs aimed at helping individuals and businesses affected by the pandemic.

Education and Fostering an “Anti-Financial Crime” Culture

The fight against financial crime depends on awareness, understanding, and appreciation of threats. To instil an anti-financial crime culture within an organization, financial institutions in French Guiana should provide increased training, guidance, and advice from regulators. Nearly three-quarters of respondents said that fines are not as effective as these methods.

Fully Embracing Digitisation and Emerging Technologies

Technology has been vital in the fight against financial crime. Financial institutions in French Guiana can leverage digitization to migrate processes online and implement effective crime detection and prevention measures. AI and robotics are central to many teams’ financial crime strategies, with 46.5% of respondents citing their importance.

Building a Resilient Operation

The pandemic has brought attention to organizations’ ability to absorb the impact of extraordinary events. Financial institutions in French Guiana must be prepared to adapt to new challenges and mitigate the impact of the mass move to remote working. By reviewing and enhancing systems, policies, and procedures, upskilling team members, and accelerating the digitization of manual tasks, financial institutions can come out stronger on the other side.

Conclusion

The COVID-19 pandemic has provided criminals with new opportunities to commit fraud, but it has also given financial institutions in French Guiana a chance to test and improve their financial crime prevention strategies. By learning from the lessons of the pandemic, implementing effective financial crime risk management strategies, and embracing digitization and emerging technologies, financial institutions in French Guiana can mitigate the impact of future crises and come out stronger on the other side.