Kroll’s study shows the financial crime risks facing the Singapore business space are a concern for 76% of executives.
A recent study by Kroll shows over three-quarters of executives were concerned about financial crimes, including money laundering, scams, corruption, bribery, and fraud. The concerns among the senior executives in Singapore are slightly higher than the global level at 71%.
Anticipated Rise in Financial Crime
Kroll, a specialist in financial and risk advisory solutions, revealed that 82% of the respondents within the Asia-Pacific region anticipate more crime in 2025. The anticipation by the senior management is the highest level polled worldwide. The risk advisory expert polled 600 senior executives in 2024 Q4 on the financial crime status within their entities.
Scrutiny into the Kroll report shows that 68% of the Singapore respondents indicated cyber security threats, while 61% alleged criminals are leveraging artificial intelligence (AI) to fuel financial crime this year. The findings support the conclusion that fraudsters pose an unresolved challenge to regulation by utilizing AI to create fake images, audio, and video.
Kroll’s findings reveal endorsement for AI that, when harnessed properly, could facilitate the timely detection and prevention of illegal financial activities. The report adds that 72% of Singapore executives believe AI benefits financial crime compliance initiatives. Nonetheless, only a quarter of those indicated they are exploring AI tools and view them as having a very positive impact.
Kroll managing director BC Tan observed that few entities within the financial space have successfully harnessed AI owing to the existing challenges. He added that compliance systems remain challenging in the banking sector, with astronomical volumes witnessed in Singapore.
Tan alleged that clients’ diversity and numbers blending with transaction volume is a monumental task for Singapore banks. Compliance with the system mirrors a needle search in the haystack.
Singapore’s Status as a Financial Hub Attracts Criminals
Tan warns that the present status of Singapore as a global financial and trade hub makes the country the North Star sought by criminals. The money launderers seek Singapore as the preferred conduit to reintegrate their loot into the financial system.
Tan arguments align with the high-profile money laundering schemes discovered in Singapore. In particular, the August 2023 case portrays the constant challenge Singapore confronts when authorities arrest 10 individuals behind financial crime. Besides the arrest, the operation featured the seizure of $3 billion worth of assets from the individuals, including real estate, vehicles, and cash deposits.
The Growing Threat of Cryptocurrency Crime
Tan hails Kroll Systems for its role in detecting and resolving the case. The discovery prompted Singapore lawmakers to adopt laws towards tighter scrutiny over money laundering activity.
The Kroll executive notes that though the discovery of the $3 billion case delivered a critical win, Singapore cannot rest on its laurels. The risk has increased as criminal actors evolve and devise sophisticated schemes. Also, the criminals are constantly looking for vulnerabilities.
Tan illustrates that cryptocurrency poses the greatest threat given that it is now a component of the financial system. He observed that uncertainty on the format, seed, and outcome of crypto is an emerging risk for Singapore business leaders. He acknowledged that the speed at which crypto evolves poses regulatory and enforcement challenges, hence an unavoidable struggle.
The Kroll report shows 74% of the respondents in Singapore rated threats crypto poses range from moderate to significant concern. Nonetheless, only 36 of the executives acknowledged safeguards in place within their organizations to address such risk.
Crypto Crime as a Global Challenge
Tan considers crypto risk to be a global fight, with its integration into everyday activities being a concern as criminals seek to exploit its vulnerability. Such is evident in the recent $1.5 billion exploit by North Korean hackers, Lazarus Group, targeting crypto exchange Bybit.
The ever-evolving tactics deployed by illicit actors suggest deploying proactive risk management, regulatory coordination, and sharing intelligence. While this has brought progress in curbing illicit activities, the dynamism in financial and crypto crime poses a persistent threat.