In 2024, there are a few major trends that are changing the world and need the attention of people who work to stop financial crime and scams. These trends include solutions that use AI, new technologies and resources, the use of information, what regulators expect, and a greater focus on being proactive.
Do you know something? This article discusses the most important anti-financial crime trends for 2024. It focuses on new trends that you should be aware of and long-standing trends that will stay on the list.
Money laundering, the process of concealing the origins of illegally obtained money, has become a global menace. Criminal organizations exploit modern systems, perpetuating security, environmental problems, and health crises. The scale of this illegal activity is difficult to assess, but it is considered to be significant.
According to the United Nations Office on Drugs and Crime (UNODC), between 2% and 5% of global GDP is laundered each year. This translates into an astounding amount of between EUR 715 billion and 1.87 trillion each year. Consequently, the need for effective Anti-Money Laundering (AML) strategies is more pressing than ever.
In 2024, the money laundering landscape witnessed several significant changes, influenced by geopolitical developments, regulatory amendments, and technological advancements. Some prominent statistics from this year include:
The number of money laundering cases worldwide increased. Despite constant efforts to curb these activities, criminals continually exploited loopholes and employed sophisticated methods to launder money.
With the growing digitization of financial services, digital money laundering, particularly through cryptocurrencies, saw a significant upsurge. Criminals leveraged the anonymity provided by digital currencies to obscure their illicit financial trails.
Regulatory authorities globally imposed hefty penalties on institutions found complicit in money laundering activities. In the US alone, penalties for money laundering offenses reached a record high in 2024.
The magnitude of money laundered globally each year is staggering. The statistics reveal that money laundering is not just a localized problem but a global issue that requires international cooperation. The UNODC estimates that the amount laundered globally each year is between 2% and 5% of the global GDP. This amounts to between EUR 715 billion and 1.87 trillion.
These figures underline the need for robust AML measures and efficient customer onboarding processes. Regulatory bodies worldwide are tightening their oversight to combat such unlawful financial activities. Companies like KYC Hub offer advanced AML solutions that provide fast and efficient customer onboarding, thereby contributing significantly to these efforts.
It is essential to examine the statistics from various regions to gain a comprehensive understanding of money laundering trends. These statistics provide crucial insights into the scale of money laundering activities and the effectiveness of the measures implemented to combat them.
In the United States, money laundering continues to be a significant concern. The U.S. Department of the Treasury published the 2024 National Risk Assessments on Money Laundering, Terrorist Financing, and Proliferation Financing, highlighting the most significant illicit finance threats, vulnerabilities, and risks facing the country.
These reports confirm and update key illicit finance concerns in response to the evolving threat and risk environment. The United States tops the list of countries with the highest rates of Anti-Money Laundering (AML) events per capita. With more than 11,472 events, that’s almost 3.5 events per every 100,000 people.
Furthermore, U.S. authorities have handed out penalties worth $14 billion in connection to AML violations in 20222, highlighting the significant financial risks associated with failing to comply with AML regulations.
The United Kingdom has seen a rise in money laundering activities, with money laundering being the most common AML event, making up 27.5% of all AML events. To combat this issue, the UK has implemented robust AML measures, focusing on understanding and verifying UBOs (Ultimate Beneficial Owners).
The UK is the second worst-offending country, with 1,664 recorded AML events – almost 2.5 events per every 100,000 people. In the UK, more than three quarters of its AML events relate specifically to money laundering, which shows the nation has a long way to go in stamping it out.
In Australia, drug trafficking has been identified as the highest-recorded AML event, making up almost 40.9% of all AML events. The country is taking active measures to combat money laundering, particularly through property investments and various money laundering schemes.
Canada has also seen a rise in money laundering activities, with AML compliance failures making up 23.9% of all AML events. The country has implemented strong AML measures to combat money laundering, focusing on understanding and verifying UBOs.
Canada saw a rise in money laundering cases linked to real estate and cryptocurrency transactions. Given these trends, Canada reinforced its AML framework, particularly focusing on real estate transactions and digital currencies.
Germany, like many other countries, has seen a significant increase in money laundering activities. The country is taking active measures to prevent money laundering, particularly through the implementation of robust AML measures and efficient customer onboarding processes.
According to a report in Friday’s Singapore Business Times, the assets confiscated in the country’s largest money laundering case have increased from S$2.8 billion in October to above S$3 billion ($2.24 billion).
The police issued restriction of disposal orders for 55 new houses and 15 cars, according to the Business Times. Interpol Red Notices, which ask law enforcement agencies throughout the globe to find and apprehend two individuals, were issued along with the arrest warrants. These individuals had departed Singapore before last year’s raid.
👉Related Read: AML Singapore: A Guide for 2024
In the fight against money laundering, we at KYC Hub are making a significant difference. KYC Hub offers fast and efficient customer onboarding with advanced AML Solutions. We provide Global AML solutions that help businesses comply with evolving local and global regulations while providing a seamless customer experience.
In conclusion, while money laundering continues to pose a significant threat globally, the implementation of robust AML measures and the use of advanced technology can significantly aid in combating this issue.
By staying informed about the latest statistics of money laundering and adopting efficient AML solutions, businesses can contribute significantly to the global fight against money laundering.
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