LONDON and NEW YORK, Dec. 6, 2023 /PRNewswire/ -- ComplyAdvantage announced today the four trends it believes will shape the financial crime landscape in 2024. In the next twelve months, the company's team of regulatory affairs experts anticipate that technology and international turmoil will pose significant challenges to financial institutions worldwide, based on discussions with regulators, industry leaders, and innovative financial institutions around the world.
Taking steps to eliminate terrorist financing will lead to a closer look at transaction flows and alternative payment mechanisms in order to combat it
The year 2023 is drawing to a close, and financial crime risk professionals are already confronted with increasing geopolitical instability, economic volatility, and rapidly changing criminal behaviors.". With more than 40 national elections taking place next year, a growing focus on terrorist financing, and technological advancements continuing to grow, these issues are going to be at the forefront for a long time to come. In spite of this, there is a tremendous opportunity to combine disparate data sources and what otherwise would be weak signals of risk, in order to identify patterns of financial crime that cut across these challenges in one shot.. With the advancements in technology, such as machine learning, we have the capability to use big data in this way.. There will be a lot of exciting innovations in this space through 2024, said Vatsa Narasimha, CEO of ComplyAdvantage, in his statement.
There will be a lot of exciting innovations in this space through 2024, said Vatsa Narasimha, CEO of ComplyAdvantage, in his statement.
As 2023 draws to a close, financial crime risk professionals are already facing an increasing amount of geopolitical uncertainty, economic volatility, and rapidly changing criminal behavior as the year draws to a close. With more than 40 national elections taking place next year, a growing focus on terrorist financing, and the continued advancement of technology, these issues will reach a peak next year.. There is, however, a huge opportunity to bring together disparate data, as well as what otherwise may have been weak risk signals, in order to identify patterns of financial crime that can be applied across all of these challenges. It is possible to use big data in this way thanks to advances in technology, such as machine learning. It is my expectation that we will see a lot of exciting innovation in this area through 2024," said Vatsa Narasimha, CEO of ComplyAdvantage
It is my expectation that we will see a lot of exciting innovation in this area through 2024," said Vatsa Narasimha, CEO of ComplyAdvantage
There will be an increase in scrutiny of transaction flows and alternative payment mechanisms in order to root out terrorist financing as trend #1.
It is evident from the war in Gaza, the ongoing unrest in Nigeria, the coups in West and Central Africa, as well as the military junta in Myanmar that watchlists are not enough to stop funding for terrorist groups and uprisings.. In order to identify and stop the financing pipelines that are supporting violent and repressive regimes all over the world, more needs to be done to identify them and stop them. Cryptocurrencies and crowdfunding platforms have been identified by the Financial Action Task Force (FATF) and the United Nations as key sectors where terrorists are using to raise money, increasing the likelihood of regulatory oversight of these sectors in the new year as well.
Cryptocurrencies and crowdfunding platforms have been identified by the Financial Action Task Force (FATF) and the United Nations as key sectors where terrorists are using to raise money, increasing the likelihood of regulatory oversight of these sectors in the new year as well.
In the crowdfunding sector, the public has created a fast and easy way for them to raise funds for everything from worthy causes to medical treatments to vacations of their dreams.. Sadly, these same platforms are also being used to channel money to some of the biggest terrorist organizations all over the world through the use of these very platforms. There is a need for technology companies and financial services companies to step up their efforts to accurately identify their customers and confirm where their money is really going," said Alia Mahmud, Global Regulatory Affairs Practice Lead at ComplyAdvantage.
There is a need for technology companies and financial services companies to step up their efforts to accurately identify their customers and confirm where their money is really going," said Alia Mahmud, Global Regulatory Affairs Practice Lead at ComplyAdvantage.
As part of trend #2, artificial intelligence will move sanctions enforcement beyond watchlist screening to identify risk signals in the network of a sanctioned individual
The use of sanctions is one of the best tools governments have at their disposal to deter financial bad actors, but they must go beyond screening watchlists in order to enforce the law based on indicators of connected risk. With ongoing conflicts in the Middle East and Ukraine, policymakers will have to reconsider the effectiveness of their sanctions programs if they want to increase the pressure on persons and entities connected to sanctioned officials who may be enabling those officials to evade sanctions.. The bank or other financial institution can identify a strong risk signal of suspicious activity by looking at a number of risk data points at once - identity, business associations, transaction activity. The solution to reducing financial crime is not just a screening problem; it is a network problem, and regulatory agencies will expect that companies leverage new technologies to help them address this issue
The solution to reducing financial crime is not just a screening problem; it is a network problem, and regulatory agencies will expect that companies leverage new technologies to help them address this issue

Source prnewswire