Financial Crime World

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Financial Crime Prevention Strategies in Finland: Progress and Recommendations

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Introduction

Helsinki, November 23, 2021 - Since the publication of a white paper by Deloitte and the Institute of International Finance (IIF) in 2019, notable progress has been made worldwide in addressing illicit financial flows through regulatory reform and intelligence-led approaches to financial crime risk management.

This latest report builds on the previous findings, tracking progress against recommendations and identifying key areas for improvement in the global regulatory and supervisory architecture. The content is based on industry experience and extensive interviews with AML/CFT compliance leaders, law enforcement officials, policymakers, and regulators.

Global Outlook on Financial Crime Risk Management Reform

Notable Progress

The first part of this paper provides an overview of noteworthy financial crime risk management reform efforts underway within international standard-setting bodies and several key jurisdictions. Notable progress has been made in areas such as:

  • Risk Prioritization: Jurisdictions have improved their ability to identify and prioritize high-risk activities and individuals.
  • Technology and Innovation: The use of advanced technologies, such as artificial intelligence and machine learning, is becoming more prevalent in financial crime risk management.
  • International Cooperation and Capacity Building: Collaboration between jurisdictions has increased, with a focus on sharing best practices and building capacity.

A Way Forward: Enhancing Effectiveness in Financial Crime Risk Management

Recommendations

The second part of the report provides a framework for public and private sector stakeholders to enhance the effectiveness of their anti-financial crime strategies. Recommendations are presented in four key areas:

  • The Use of Financial Intelligence:
    • Improve the collection, analysis, and dissemination of financial intelligence.
    • Enhance collaboration between law enforcement agencies and financial institutions.
  • Risk Prioritization:
    • Develop more effective risk-based approaches to identify high-risk activities and individuals.
    • Implement robust controls to mitigate identified risks.
  • Technology and Innovation:
    • Leverage advanced technologies to enhance financial crime risk management capabilities.
    • Encourage innovation in the development of new solutions.
  • International Cooperation and Capacity Building:
    • Strengthen collaboration between jurisdictions through information sharing and capacity building.
    • Develop joint initiatives to address emerging threats.

Conclusion

While jurisdictions have varying levels of maturity in financial crime frameworks, the global community recognizes the need for sustained collective focus to prevent the misuse of finance and its subsequent damage to society and financial stability. As Finland continues to play an active role in international efforts to combat financial crime, it is crucial to prioritize these recommendations and work towards enhancing the effectiveness of anti-financial crime strategies.

Kaarle Pohjavuori, Partner and Risk Advisory Lead at Deloitte Finland, emphasizes the importance of collaboration between public and private sectors in preventing financial crime. With over 15 years of experience in risk advisory services, particularly in the financial sector, Pohjavuori stresses that a sustained effort is needed to deliver outcomes that stop the criminal misuse of finance.

As the world community continues to grapple with the challenges of financial crime, it is essential to prioritize collaboration, information sharing, and capacity building to ensure the integrity of the global economy.