New research conducted by RegTech NICE Actimize and Regulation Asia, suggests that countering financial crime could move beyond well-used tools such as suspicious transaction monitoring and sanctions screening and focus on high risk areas, including trade-based financial crime. Other areas considered high risk include fraud and cybercrime.
AML Tech Barometer: Perspectives from Asia, which looks at how new technology is being deployed to fight financial crime, also finds that trade-based money laundering (TBML) is increasingly a priority for financial institutions.
Surveys and interviews
The report analyses survey and interview data collected from 216 financial crime and fraud professionals across the Asia Pacific region to try an understand how financial institutions are leveraging technology to enhance financial crime risk management.
It presents research findings that appear to shed light on the key priority areas for financial institutions, the challenges they face in technology adoption, and their outlook for the year ahead.
Technology take-up
The report finds that financial institutions are increasingly willing to use technology to address financial crime risk in traditional compliance functions such as know-your-customer (KYC), sanctions screening and transaction monitoring.
They are also looking to invest in new areas reflecting possible future changes driven by regulators.
TBML tools
Regulatory pressure is one of the catalysts for financial institutions to focus more on TBML and it seems likely that new technologies will be adopted to fight trade-based financial crime.
The report includes insights from the Australian Transaction Reports and Analysis Centre (AUSTRAC), the Hong Kong Monetary Authority (HKMA), the Monetary Authority of Singapore (MAS), and participating financial industry practitioners.
The report AML Tech Barometer: Perspectives from Asia can be downloaded on request from here.
Categories: Trade Based Financial crimes News
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