Financial Crime – Moving beyond data silos

Financial Crime

New technologies are driving increasingly sophisticated financial crimes. Illegal acts such as fraud, bribery, corruption, money laundering and terrorist financing are gaining momentum, challenging companies’ resilience in a digitally-driven era.

Our survey shows that 64% of companies were exposed to financial crime over the past year, negatively impacting revenues and causing companies long-term reputational damage.

In the last 12 months, 15% of G20 companies have been the victim of fraudulent practices; impacted by sanctions or embroiled in political corruption, while 11% report being part of a regulatory (or other) investigation. Of the financial crimes assessed, fraud had the highest incidence of those assessed at 28%.

As in our previous survey, theft and fraud represent the largest category of financial crime in 2020, with both having an incidence of 24% over the previous 12 months. Around one in five have also been affected by bribery and corruption, tax evasion, insider trading and money laundering.

When companies are put under extreme pressure by shareholders to increase turnover, these risks increase as controls are likely to be circumvented in the drive for profit.

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