Regulation, political turbulence and evolving operational challenges are making 2017 a challenging year for those in the front line in fighting financial crime – including corporates and banks. Some of the broad themes and potential risks from financial crime in 2017 identified in research conducted by LexisNexis Risk Solutions include the following:

1. Information sharing

How organisations and financial institutions share data internally has a high impact on exposure to financial crime. The UK's Criminal Finances Bill is expected to tackle this issue by encouraging effective data sharing. However, many organisations – corporates and banks – are still struggling with legacy systems.

2. Personal liability

Personal liability is becoming an increasingly important issue in the field of financial crime and regulations are now requiring more personal accountability among directors and senior staff – including the Senior Managers Regime (SMR), which was introduced in the UK in 2016 to improve individual accountability and governance within banks and other financial institutions.

3. The cost of compliance

The ever-increasing cost of compliance is also a major consideration for both banks and companies. Investing in employee training, protective software and systems, as well as expert advice continues to be unavoidable in protecting company data. Indeed, investing in technology will always be one of the foremost ways in which organisations can fight financial crime.

4. Geo-political uncertainty

There are too many political pressure-points around the globe to mention but – from North Korea, to Brexit, to Trump to this year's European elections, not forgetting Syria and the influence of Russia – the turmoil in the geopolitical landscape is and will continue to provide criminals with opportunities.  

---

CTMfile take: These trends were identified in a preview of a research report to be published by LexisNexis Risk Solutions. The full report - Future Financial Crime Risks 2017 - will be available shortly.