Law firms and financial executives are facing increasing concerns over sanctions compliance, money laundering crackdowns, and technology regulations in 2023, according to a new report by ComplyAdvantage, The State of Financial Crime. The report surveyed 800 C-suite and senior compliance decision-makers across the US, Canada, UK, French, Germany, Netherlands, Singapore, Hong Kong, and Australia.
As economic uncertainty continues to grow due to geopolitical tensions, cost-of-living crises, and looming recessions, lawyers and financial executives are doubling down on their risk mitigation efforts. A staggering 99% of respondents are re-evaluating their risk appetite due to the uncertain economic environment. Over half (59%) are preparing for a dramatic increase in financial crime, and a similar percentage (58%) are planning to hire additional risk personnel to assist with compliance.
“The increasing uncertainty in the global economy has led to financial institutions re-evaluating their risk mitigation efforts. It is essential to ensure that they have the right tools in place to mitigate these risks,” said Rudi Kesic, CEO of Verify 365.
The report found that the conflict in Ukraine has put sanctions at the forefront of many global financial institutions’ priorities. 46% of those surveyed said Russia is the geopolitical hotspot their firm is most concerned about, with 50% implementing a freeze on Russian assets and 44% shutting down their onboarding processes in Russia.
ComplyAdvantage’s report also revealed that criminals are using new technology to launder money, making anti-money laundering controls essential to keep up with these new methods. When asked which area of their organisation they were most focused on improving related to anti-money laundering (AML) compliance, 45% of survey respondents said supply chain risk, 43% said virtual asset risk monitoring, and 40% said fraud detection.
“Law firms and financial institutions need to have a comprehensive understanding of their clients and their transactions to prevent financial crimes,” added Rudi. “Our technology platform, Verify 365, helps law firms and financial institutions mitigate risk and stay compliant with ever-changing regulations.”
Law firms and financial institutions have recently embarked on major digital transformations, but the new technology and partnerships that power these transformations require regulations, frameworks, and guidelines to ensure consumer and business safety. Verify 365 provides an all-in-one solution to help lawyers, estate agents, banks and accountants stay compliant with AML regulations while also allowing for digital transformations.
Verify 365 is a powerful tool that helps prevent financial crimes, ensuring their risk controls are effective. With Verify 365, financial institutions can gain a comprehensive understanding of their clients and their transactions, mitigating risk and staying compliant with ever-changing regulations.
