We are now experiencing a resurgence of trade-based money laundering. It’s an avenue that people haven’t focused on recently because they’ve been concentrating on financial cybercrime. Mark Gazit, CEO of ThetaRay, writes
Go deeper with GlobalData
Trade-based money laundering is easy to implement and simple to keep shielded from financial detection. Because we live in a connected world, trade is increasingly moving online, so trade-based money laundering will likely become an even larger part of financial cybercrime in 2020.
We might see the first sign of IoT-based financial crime as well, due to advancements like Google’s plan to offer checking accounts, Apple Pay, and possibly Facebook’s Libra. These technologies will provide opportunities for a new type of cybercriminal who utilises next generation payment providers to hack into accounts and not only access customer data, but steal money as well.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
In 2019, regulatory enforcement increased – not only for financial institutions but for their executives. We’ve seen firings, arrests, and even the suicide of Danske Bank Estonia’s former CEO. This trend will continue in 2020, with governments finding executives liable for human trafficking, terror funding and other crimes whose proceeds are laundered through the financial system. Institutions will become more cautious about potential money laundering not just because of regulation and compliance, but because they will be under greater public scrutiny for their perceived role in these crimes.
To protect themselves, they will likely invest in new AI-based solutions, such as ThetaRay’s Artificial Intuition. Regulators will become more open to banks using advanced AI systems to identify unknown and unexpected threats. However, explainability and transparency of AI systems will be crucial.
