Financial Crime in 2023
Supply Chain Background Check

The Importance of Due Diligence and Open-Source Intelligence


Financial crime continues to be a major concern for companies and investors, with new trends emerging each year. With the year 2023 upon us, it’s important to understand the current state of financial crime and how it may impact investment decisions. In this article, we will examine four trends shaping the state of financial crime in 2023 and the importance of due diligence in combating it.

Increased focus on compliance and regulation: One trend that is shaping the state of financial crime in 2023 is an increased focus on compliance and regulation. As governments around the world work to prevent financial crime, companies are facing a growing number of regulations and laws to comply with. This includes anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations. Companies that fail to comply with these regulations can face serious consequences, including fines, legal action, and reputational damage. It’s important for companies to be proactive in understanding these regulations and ensuring they are in compliance with them.

The use of technology to combat financial crime: Another trend affecting financial crime in 2023 is the use of technology to combat it. With financial criminals becoming more sophisticated, companies must also become more sophisticated in their methods of detecting and preventing financial crime. This includes the use of artificial intelligence and machine learning to monitor transactions and detect potential financial crime. These technologies can help companies identify red flags and warning signs, such as suspicious transactions, and take appropriate action.

The rise of cryptocurrency: The rise of cryptocurrency has had a significant impact on financial crime in recent years, and this trend is expected to continue in 2023. Cryptocurrency has become increasingly popular, making it an attractive target for financial criminals looking to launder money or engage in other illegal activities. Companies must adapt their compliance and risk management strategies to address these new risks, and ensure they are not exposing themselves to financial crime.

The impact of economic and political uncertainty on financial crime: Economic and political uncertainty can also have a significant impact on financial crime. In times of economic uncertainty, individuals and companies may be more likely to engage in illegal activities in an effort to make ends meet. This can create opportunities for financial criminals and increase the risk of financial crime. Companies must consider these risks when assessing their overall risk profile and take appropriate steps to mitigate them.

In conclusion, due diligence is a crucial step in identifying and mitigating risks associated with potential investments. By incorporating open-source intelligence into the due diligence process, companies and investors can stay informed about current trends in financial crime and make informed investment decisions. At Futurum Asia, we provide investment due diligence services to help companies and investors stay ahead of financial crime and make informed investment decisions.

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