Kroll’s 2023 Fraud and Financial Crime Report shares the findings from a survey of 400 executives across the globe conducted in Q1 2023. This report navigates the complex, innovative and ever-changing landscape of financial crime and technology and shines light on the more than USD 800 billion laundered every year.
We began 2023 with ongoing economic pressures, geopolitical tensions, an increasingly diverse regulatory environment and exciting advancements in AI. International headlines were dominated by revelations of Ponzi schemes, government scandals, public corruption, greenwashing, sanctions evasion and other economic crimes. Behind these headlines were passionate prosecutors, attorneys, law enforcement officials, regulators, compliance officers and risk analysts working together to combat the rising tide of financial crime. A better understanding of the state of the fight against financial crime has become more important as new technology unfolds.
As the global landscape becomes increasingly fraught with risk, anti-bribery and corruption (ABC), enforcement is emerging as a salient concern among executives and risk management professionals within financial institutions and multinational corporations. Sixty-four percent of our survey participants anticipate an increase in ABC enforcement actions within the upcoming year, with a majority citing third-party gatekeepers as a significant contributory factor to escalating financial crime risk.
These concerns call for a nuanced examination, delving into the societal and economic ramifications of corruption, and the proliferating risk of economic crimes.
Learn More About Corruption and Bribery
Kroll’s 2023 Fraud and Risk Report notes 44% of global survey respondents cite consistent compliance across geographies as the top challenge. Sanctions compliance and rapidly evolving sanctions programs continue to strain multinational corporations and banks. Russia's war on Ukraine and evolving geopolitical landscapes have led to a massive expansion of sanctions programs and risks, prompting organizations to enhance their supply chain controls and risk management strategies. It is critical to adopt best practices, invest in technology and collaborate with peers and government regulators.
Kroll’s 2023 Fraud and Financial Crimes Report provides a stark reminder that financial crime risk remains as potent as ever with 69% of respondents expecting financial crime threat to increase over the next 12 months. Delving deeper into this data, at least 33% of respondents expect specific risks posed by cybersecurity and data breaches to crystallize, suggesting a third of respondents’ entities will suffer some kind of adverse event.
Learn More About Data and Financial Crime
Nearly half of Kroll’s Fraud and Financial Report survey respondents agree or strongly agree that carbon credits are an effective solution for fighting climate change. That raises some concerns in the current environment. Given the lack of clear rules for carbon credit generation or definitive best practices around their proper use, companies should be especially vigilant when purchasing and utilizing them in broader climate reduction strategies and activities.
In this webinar, Kroll's experts discussed key takeaways from this year's Fraud and Financial Crime report and strategies for getting ahead in the evolving fight against fraud and financial crime.
AI has proven transformative, particularly in combating financial crime. However, the effectiveness of AI hinges significantly on the quality of the underlying data. Read Kroll’s latest article to learn why high-quality, well-structured data is key to harnessing AI’s full potential in the fight against growing financial crime.
It is fair to say that the past four years have been challenging: Brexit, the COVID-19 pandemic, economic recession, unprecedented inflation and the war in Ukraine. Each of these events has paved the way for an uptick in criminal activity.
Read More
Customer onboarding can be overshadowed by other aspects of an organization’s compliance program, often viewed as a “check-the-box exercise” that doesn’t necessarily make the headlines.
Read More
Financial crime comes in all shapes and forms, from drug cartels laundering profits through legitimate businesses, to the rich and powerful offshoring their wealth, to students used as money mules buying million-dollar properties for unknown individuals.
Read More
There’s a saying attributed to W. Edwards Deming, the father of the mid-1980s quality movement: “In God we trust. All others must bring data.” It can hardly be truer than when applied to the challenge of fighting financial crime and the relevance of accessing the right data at the right time.
Read More
Corruption presents a daunting challenge to societies and economies worldwide. It undermines development, destabilizes governments, erodes societal trust and curbs economic growth.
Read More
Sanctions are employed by governments as a means to change the behavior of a country, regime, individual actor or company.
Read More
There are a variety of risks that need to be considered in the case of crypto—market, regulatory and cyber risks to name a few.
Read More
The last several years have seen a material increase in the use of carbon credits and offsets by companies as part of broader global efforts to address climate change and reduce carbon emissions.
Read More
Firms must make a focused effort to explain and backstop their ESG initiatives and provide the steps they have taken or will need to take to achieve their goals.
Read More
Kroll’s global Financial Crime Advisory team is comprised of seasoned compliance, investigative and regulatory professionals to help enterprises around the world defend against the rapid growth of financial crime.
Kroll’s anti-money laundering (AML) solutions are designed to help minimize the risks associated with money laundering and other illicit activities and to ensure compliance through the development and management of ongoing compliance programs and processes.
Kroll helps clients navigate the complexities of today’s regulatory environment through a broad suite of anti-money laundering compliance screening and due diligence offers.
Kroll helps clients mitigate and respond to the risks associated with international anti-corruption legislation.
Proactively detect fraud and corruption with Kroll’s risk, investigations and data analytics experts, supported by an award-winning software.
