The global framework for fighting financial crime

The amount of money laundered each year is estimated to range from 2 to 5% of global GDP, equaling nearly €1.87 trillion annually. The scale of the problem and its impact are immense - but it’s not for want of investment.

Billions are spent annually on financial crime compliance, yet the view from stakeholders is almost unanimous: the current regulatory framework does not effectively or efficiently empower financial institutions to combat the continuously evolving tools of criminals.

The current perspectives on financial crime from those in financial services and public sector is the focus of a new report from the Institute of International Finance and Deloitte. Based on interviews with key players from financial institutions and law enforcement as well as policy makers and regulators, The global framework for fighting financial crime explores the existing challenges faced by stakeholders and provides detailed and achievable recommendations in seven key areas which, taken together, provide a way forward on mitigating illicit financial flows through a combination of regulatory reform, international cooperation and an increasingly intelligence-led approach.

  1. Global systemic improvements for financial crime risk management
  2. Advancing public/private sector partnership
  3. Improving cross-border and domestic information sharing
  4. Improving the use and quality of data
  5. Reforming Suspicious Activity Reporting regimes
  6. Mitigating the inconsistent or incoherent implementation of financial crime compliance standards and guidance, and providing regulatory clarity
  7. Increasing and improving the use of technology to combat illicit finance

This report breaks down these seven areas, providing detailed and achievable recommendations for long-term systemic reform. Taken together, these have the power to transform how society combats criminality in financial services and empower regulators and financial institutions to improve the global framework for day-to-day financial crime risk management.

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