A majority (71%) of financial services professionals participating in a recent survey expect the risk of financial crime to increase in 2025. The survey findings also highlight concerns among respondents around the use of AI, regulatory complexity, geopolitics and sanctions when it comes to the fight against fraud and financial crime.
The survey 2025 Financial Crime Report conducted by risk advisory firm Kroll shows some regional variations, with the expectation of more financial crime highest in Asia (82%) and lowest in the US (64%). Europe was more in line with the global average at 72%.
Cyber security was again ranked as the number one risk, as cited by 68% of respondents. The report also revealed the different attitudes to the role of AI in fighting financial crime.
Nearly half (49%) of respondents expect to invest in AI to bolster their efforts at fighting financial crime and more than a quarter (27%) of the surveyed firms already have AI and machine learning as an established part of their financial crime compliance programmes, an increase on the 24% of 2023.
The technology is primarily being used to enhance detection capabilities – to identify suspicious behaviour, for network analysis and to identify risk signals. However, only a fifth (20%) believe that AI has had a “positive effect” on their financial crime fighting efforts, a sharp reduction on the 37% of 2023.
The survey also suggests that financial services firms are not prepared to deal with a more complex regulatory environment and an increase in geopolitical risk. Nearly half (49%) cite keeping up with regulatory changes as the biggest problem in sanctions compliance, with only 39% “very confident” in their firm’s sanction-screening capabilities.
Meanwhile, just a third (33%) of respondents say they are “very prepared” to address geopolitical risks over the next 12 months, and only 38% are “very confident” in their financial compliance programme’s ability to detect emerging geopolitical threats.
Kroll risk advisory co-president Brent Tomlinson said, “It is a worrying, but not surprising, revelation that sophisticated financial risk and compliance leaders feel less prepared than ever to prevent and mitigate rising financial crime risks in today’s complex global environment.
“While we are yet to see exactly what this year will hold, financial crime remains a major global concern and professionals in all sectors will need to be on the top of their game, partnering with experts on risk analysis, decision-making support and mitigation plans, if they are to protect and grow their businesses.”
The survey included more than 600 respondents globally, interviewed in the fourth quarter of 2024.