Financial Crime Today’s and the role of AI

 

As RegTech closed another year marked by significant advancements and shifts in the financial crime landscape, it is proving keys for the sector to look back at 2024 to forecast the potential challenges and innovations that 2025 may hold. Industry experts have shared their reflections, indicating a year where regulatory tightening, sophisticated fraud tactics, and cutting-edge technology have reshaped the field. The insights offered not only summarize the past year’s developments but also provide a roadmap for the future.

 

 

At the core of these discussions is the pivotal role of innovation and collaboration within the financial crime sector. Experts suggest that these elements are not just beneficial but necessary for progress. The idea of possessing a ‘time machine’ to predict future challenges was metaphorically presented to industry leaders. Executives from leading companies have highlighted recurring themes, particularly the impact of artificial intelligence (AI).

 

 

AI’s prevalence in 2024 has set the stage for its continued influence across all aspects of financial crime prevention in the upcoming year. Experts anticipate that AI will be central to combating fin-crime more effectively, suggesting an industry-wide sprint towards embracing and refining this technology.

 

 

However, there’s a twist in the narrative as the industry focuses on AI: Criminals are expected to pivot away from tech-heavy strategies to more traditional methods, such as social engineering. This shift means targeting individuals directly, which presents a lower risk and greater challenge for detection. This trend highlights a potential gap between industry efforts and criminal tactics, emphasizing the need for enhanced public awareness and education to ‘target-harden’ potential victims.

 

 

Moreover, the lack of effective collaboration and information sharing within the industry remains a critical concern. Despite frequent discussions about the importance of cooperation, there seems to be disconnecting between what is preached and what is practiced. Real collaboration goes beyond networking at conferences—it requires actionable cooperation and shared goals that lead to tangible outcomes and a safer financial environment.

 

 

As the industry look towards the need for a more unified approach to combating financial crime. The industry must not only keep up with technological advancements but also foster a culture of genuine collaboration and public education to stay ahead of criminals’ ever-evolving tactics.