Financial Crime World

Global Financial Crime Framework Needs Overhaul to Deliver Results

A new report has highlighted the need for significant changes to the global financial crime framework in order to deliver better results. The current system is criticized for being overly focused on mandating compliance rather than delivering outcomes, such as providing useful information to law enforcement that leads to arrests or the recovery of criminal assets.

Current Challenges

The report notes that the current system is too focused on mandating compliance rather than delivering outcomes. This means that there is a lack of effective coordination and leadership across jurisdictions, which hinders the ability to provide useful information to law enforcement agencies.

A New Approach

The report calls for a “whole system” approach to financial crime risk management, where all stakeholders work together to deliver effective outcomes. This requires clear leadership and coordination across jurisdictions, as well as incentives for high-value activities.

Key Findings

  • The current financial crime framework is too focused on mandating compliance rather than delivering outcomes.
  • A “whole system” approach is needed, where all stakeholders work together to deliver effective outcomes.
  • Clear leadership and coordination across jurisdictions are critical for success.
  • Incentives for high-value activities are necessary to support the delivery of effective outcomes.
  • Standards for information sharing need to be improved and implemented consistently across jurisdictions.

Recommendations

  • Develop a new standard on establishing domestic and cross-border information sharing mechanisms as part of a key metric for an effective anti-financial crime system.
  • Implement the FATF recommendations on national cooperation and coordination between AML and data privacy authorities consistently across jurisdictions.
  • Strengthen the basis for implementation and ensure that increased cooperation and coordination between financial crime and data privacy authorities genuinely leads to the development of operative information gateways in legislation or the clarification of existing rules.

Quotes

“We need a fundamental overhaul of the global financial crime framework if we want to deliver better results,” said [name], author of the report. “A ‘whole system’ approach is necessary, where all stakeholders work together to deliver effective outcomes.”

“The current system is too focused on mandating compliance rather than delivering outcomes,” added [name], expert in the field of financial crime. “We need to shift our focus towards providing useful information to law enforcement that leads to arrests or the recovery of criminal assets.”