Financial Crime World

Dutch Financial Crimes Fighters Leverage Technology to Combat EUR 25 Billion Money Laundering Annual Threat

The Netherlands and neighboring countries face an immense pressure to combat financial crimes, with an estimated EUR 21 billion in money laundering annually and an additional EUR 5-9 billion in Belgium and Luxembourg [1]. In this article, we shed light on the covert world of financial crime fighting and explore the visions and tools employed by key players.

Overview of Financial Crimes

  • Financial crime is a complex issue involving illegal conversion of property ownership for personal gain.
  • It encompasses various forms of criminal activity, including fraud, money laundering, and terrorist financing.
  • Despite the challenges, there is a collective global endeavor to detect and monitor financial crimes to cut off the financial lifeline of criminal organizations.

Money Laundering: The Three Steps

  1. Placement: Introducing the money into the financial system.
  2. Layering: Disconnecting illicit funds from their criminal origin through multiple transactions.
  3. Integration: Reintroducing the money into the financial system, making it seem legitimate.

A Collaborative Effort

  • Financial institutions function as gatekeepers, reporting suspected transactions to authorities.
  • Tech companies and RegTech innovators offer cutting-edge technologies to detect financial crimes.

A Shifting Landscape

  • Financial crimes and prevention are an evolving landscape.
  • Expertise in both domain knowledge and technological advancements is necessary.

IBM’s Role in Financial Crime Prevention

IBM supports clients in various ways, including:

  • Digitalizing KYC and AML
  • Enhancing due diligence
  • Offering learning opportunities on AI
  • Strengthening transaction monitoring

[1] Financial Crimes and its Prevention: A Collaborative Effort. (n.d.). Retrieved from https://techcrunch.com/2021/03/02/financial-crime-and-its-prevention-a-collaborative-effort/ [2] Money Laundering: The Three Steps. (n.d.). Retrieved from https://www.police.nl/en/subjects/crime_offences/economic_crime/money_laundering/Pages/money-laundering.aspx [3] Fintechs join the fight against financial crime. (2020, March 3). Retrieved from https://fintech.global/news/articles/fintechs-join-the-fight-against-financial-crime [4] IBM Services: Helping to Fight Financial Crimes. (n.d.). Retrieved from https://www.ibm.com/services/financial-crimes-reporting [5] IBM: Enhancing Compliance in Financial Services. (n.d.). Retrieved from https://www.ibm.com/financial-services/financial-crimes-compliance/