Collaborating to Fight Financial Crime
One in two global organizations have been a victim of financial crime (PDF) or fraud. However, the other half, seemingly untouched by financial crime may simply be unaware of their exposure to money laundering or fraud-related risks.
The world of financial crime is interwoven with cultural, ethnic, and religious ties that span the globe and cut across geographical boundaries. Every financial institution, no matter how vigilant, may have not have a complete picture of the money laundering network (PDF) that these financial criminals weave.
Criminal elements are always adapting and probing for a single weak link in the financial system to exploit. Small terrorist cell networks, for example, have grown with small funding needs. Seventy-five percent of the 40 violent extremist terrorist plots in Europe between 1994 and 2003 cost less than US$10,000, effectively bypassing the money transfer threshold set by many financial institutions or central banks.
Some organizations spend on ever more powerful technology tools to fight financial crime but do these investments yield a genuine proactive approach that mirror the speed in which money can change hands across the seas and global criminal organizations?