A recent report from Kroll, a financial and risk advisory firm, has revealed that over 70 per cent of executives in Hong Kong are anticipating a rise in financial crime by the year 2025. This alarming statistic comes at a time when only 18 per cent of these executives believe that their organization’s compliance program is “very effective.”
The report, which was released on Monday, surveyed more than 600 respondents globally between September and October 2024. Half of the participants worked in the financial services sector, with the remaining individuals coming from various other regulated industries such as accounting, insurance, and real estate.
Violet Ho, the head of Greater China investigations, diligence, and compliance at Kroll, highlighted two key themes in the report that differentiate it from previous ones – geopolitics and technology. Specifically, advancements in artificial intelligence (AI) and cryptocurrency are areas of concern that have caught the attention of survey respondents.
Ho expressed that there is a prevailing sense of pessimism among the participants, attributed to the current volatile environment. One of the primary worries identified in the report is cybercrime, with Hong Kong being a bustling financial hub that attracts various types of fraudulent activities.
She explained, “Hong Kong’s status as a financial center means that it often serves as a transit point for global fraud, placing significant pressure on financial institutions and banks in the region to enhance their know your customer (KYC) procedures, anti-money laundering protections, and overall security measures.”
In an effort to combat these growing threats, the Hong Kong Monetary Authority (HKMA) made a commitment to fighting fraud and scams utilizing the latest technologies at the APAC Fighting Financial Crime Conference 2025 held on April 1st.
Overall, the findings of the report underscore the urgent need for organizations in Hong Kong to bolster their compliance programs and strengthen their defenses against financial crime. With the evolving landscape of technology and increasing global interconnectedness, proactive measures are essential to protect businesses and individuals from potential risks and threats.