Financial Crime World

Financial Crime Prevention Techniques in Ireland: Experts Anticipate a Paradigm Shift

As financial crime threats evolve and regulatory scrutiny intensifies, companies are reassessing their approach to risk management and compliance. With billions of euros spent annually on preventing financial crime, it’s imperative that firms adopt a robust operating model to meet regulatory expectations without breaking the bank.

A recent survey of 16 global thought leaders from industry, government, RegTech, law enforcement, consulting, and academia has revealed six major trends that will shift the paradigm of disrupting financial crime compliance over the next five to ten years:

  • A purpose-led approach, focusing on strategic objectives rather than simply complying with regulations
  • Effectiveness rather than tick-box compliance, prioritizing outcome-oriented solutions over mere conformity
  • Deeper public-private partnerships, collaboration between government, industry, and civil society to combat financial crime
  • New ways to know your customer, innovative approaches to customer due diligence and monitoring
  • Next-generation financial crime detection systems, leveraging technology and data analytics to stay ahead of threats
  • Data and technology underpinning the evolution, harnessing the power of digitalization and AI to drive compliance innovation

Practical Steps for Effective Financial Crime Prevention

To combat financial crime, experts recommend six practical steps that organizations can take:

1. Define a Target State Operating Model

  • Fix, remediate, but don’t lose focus on the strategic - define a target state operating model that enables teams to act tactically while thinking strategically.

2. Move to Perpetual KYC

  • Digitize the KYC process to improve data quality, enhance compliance, and improve outcomes.

3. Innovate Customer Monitoring

  • Augment rules-based engines with intelligence-led analytics tools that target complex and intelligent scenarios.

4. Fix Your Data Today

  • Data aggregation can accelerate effective financial crime systems, but know that data does not have to be perfect.

5. Align Transformation to a Strategic Plan

  • Transformation is a continuous journey and should not be locked into a fixed timeframe.

6. Empower Financial Crime Operations

  • Financial crime operations teams are key to improving effectiveness and efficiency.

Expert Guidance from KPMG

KPMG, a leading professional services firm, offers expert guidance on developing strategic roadmaps, exploring perpetual KYC solutions, creating technology strategies, advising on innovative customer monitoring tools, and providing global best practices and intelligence. For more information, please contact our team or visit our Risk Consulting section.