A recent report by Kroll, a global financial and risk advisory firm, reveals that 76% of senior executives in Singapore’s financial and professional services sectors anticipate an increase in financial crime risks by 2025. This figure surpasses the global average of 71%, highlighting Singapore’s heightened concern over financial crime threats.
The 2025 Financial Crime Report identifies key drivers of these risks, including cybersecurity threats, the increasing use of artificial intelligence (AI) by criminals, regulatory changes, geopolitical tensions, and sanctions. Notably, cybersecurity is cited by 68% of global respondents as a significant risk factor, with 61% in Singapore echoing this sentiment.
Despite the anticipated rise in financial crime, only 24% of Singaporean executives believe their compliance programmes are “very effective.” The report suggests that insufficient technology adoption and investment are potential reasons for this ineffectiveness, with only 26% strongly agreeing that their programmes are adequate in these areas.
AI’s role in financial crime compliance is a double-edged sword. Whilst 72% of respondents believe AI developments will benefit compliance efforts, 58% acknowledge the significant risks AI poses. Furthermore, the threat of cryptocurrencies is a moderate to significant concern for 74% of respondents, yet only 36% have compliance programmes addressing these risks.
David Lewis, Managing Director at Kroll, commented on the complex risk environment firms face in 2025, stating, “From cybersecurity threats to geopolitical uncertainty, firms are facing an incredibly complex risk environment.”
As Singapore prepares for the fifth round of the Financial Action Task Force mutual evaluation, the focus is shifting towards the effectiveness of compliance programmes. The report underscores the need for technology-driven capabilities to match the evolving threat landscape.
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