Increasing pressure on compliance teams reinforce the need for adoption of technologies that can drive greater efficiencies in risk management, anti-money laundering (AML), sanctions and anti-bribery and corruption programs
SINGAPORE – June 30, 2023: Kroll, the leading independent provider of global risk and financial advisory solutions, today released its 2023 Fraud and Financial Crime Report, which found that that 62% of Singapore based executives and risk professionals worldwide expect financial crime risks to increase over the next 12 months. Cybersecurity and data breaches are expected to be the primary drivers of increased financial crime risks, followed by financial pressures on organizations.
A survey of 400 senior leaders and risk professionals across four continents found that to counter a potential uptick in financial crime risks, two-thirds (67%) of respondents globally are planning to invest more in technology, with nearly half of respondents (49%) citing data integrity as the biggest challenge when implementing new technologies.
Reshmi Khurana, Managing Director, Forensic Investigations and Intelligence, Singapore at Kroll, said, “In the face of this dynamically evolving landscape, the convergence of technology, geopolitics and financial crime brings an intricate web of risks, but also opportunities. Harnessing technology advancements, strengthening governance and fostering transparency will be key to our collective success in this ongoing fight against financial crime.”
Key findings from global and Singapore-based respondents represented in this survey:
- While 62% of Singapore respondents expect financial crime risks to increase over the next 12 months, 69% of global respondents expect the same.
- Nearly two-thirds of respondents, both globally and in Singapore plan to invest in technology to tackle the expected increase in financial crime.
- Several respondents – 60% in Singapore and 59% globally – believe governments are losing ground or will lose ground in the fight against financial crime due to rapidly evolving technologies.
- Digital currencies, evolving technologies, data privacy and sanction evasion tactics were rated as the top challenges posed to government in fighting financial crime.
- While 52% of respondents in Singapore agree that third-party gatekeepers create anti-money laundering challenges, 58% of global respondents feel the same.
- 78% of respondents in Singapore and 73% respondents globally said they are dedicating more time towards enhancing supply chain controls or diligence because of exposure to materials that originate from sanctioned counties or are subject to export controls in the next year.
- Nearly one-third of respondents, both in Singapore and globally say that their companies’ financial crime compliance programs cater for risks associated with cryptocurrencies.
- 62% of respondents in Singapore and 61% of global respondents agree that ESG factors should be a consideration for all businesses and part of every financial crime compliance program.
- 66% of Singapore respondents and 60% of global respondents agree that Greenwashing concerns or the perception of greenwashing have prompted them to make changes to their financial crime compliance program.
ENDS
Methodology
Kroll commissioned a survey of 400 global executives and risk professionals in March 2023. Eight countries were represented in the survey with 50 participants from each country—the U.S., Brazil, Mexico, the UK, France, Germany, the UAE, and Singapore.
About Kroll
As the leading independent provider of risk and financial advisory solutions, Kroll leverages our unique insights, data and technology to help clients stay ahead of complex demands. Kroll’s team of more than 6,500 professionals worldwide continues the firm’s nearly 100-year history of trusted expertise spanning risk, governance, transactions and valuation. Our advanced solutions and intelligence provide clients the foresight they need to create an enduring competitive advantage. At Kroll, our values define who we are and how we partner with clients and communities. Learn more at kroll.com.
