Three-quarters of senior execs in Singapore flag worries about financial crime risks in 2025: Report

SINGAPORE – Business managers here are more concerned than their peers overseas that their organisations will be targeted by criminals in 2025, noted a new report.

It found that 76 per cent of executives polled were worried about getting entangled in financial crimes ranging from money laundering, fraud and scams to bribery and corruption – slightly ahead of the global level of 71 per cent.

The report from Kroll, a provider of global financial and risk advisory solutions, also noted that 82 per cent of senior management in the Asia-Pacific region expect more financial crime in 2025, the highest level in the world.

The firm polled 600 senior executives from around the world in late 2024 on the state of financial crime in their organisations.

The Singapore findings highlight that 68 per cent of respondents cited cyber-security threats and 61 per cent pointed to criminals using artificial intelligence (AI) as the two factors that will fuel financial crime in 2025.

Kroll noted that fraudsters are posing challenges for regulators by using AI to generate fake images, video or audio. 

But it also noted that if AI is harnessed properly, it can help organisations detect and prevent illegal financial activity.

The report found that while 72 per cent of respondents believe AI will benefit their financial crime compliance programmes, only 25 per cent of those already exploring these tools see a “very positive impact” from the technology.

Mr B.C. Tan, managing director and head of South-east Asia in Kroll’s investigations, diligence and compliance practice, said few financial institutions and companies have succeeded in harnessing AI because of the challenges involved.

“When you talk about compliance systems in the banks, especially for Singapore, the volumes that we deal with are astronomical,” Mr Tan added.

The “number of clients, the diversity of clients, the number of transactions, the volume of transactions”, it really is a tall task for our banks, he said, adding that “it is almost akin to looking for a needle in a haystack”.

Mr Tan added that Singapore’s status as a trade and financial hub has made it the “North Star for criminals”.

Money launderers, for instance, want to use it as their destination when they “reintegrate the illicit funds” back into the financial system as legitimate money.

The

high-profile money laundering case

in August 2023 highlighted the constant challenge Singapore faces with financial crime.

The police operation led to the

arrest of 10 individuals

and the seizure of more than $3 billion worth of assets, including currency, bank accounts, cryptocurrency, real estate and vehicles.

“It is a positive story that our system caught it,” Mr Tan said, adding that Singapore has since adapted its laws to tighten scrutiny over money laundering activity. 

While the $3 billion money laundering case was “a win” for Singapore, the country “cannot rest on its laurels”, Mr Tan said, adding: “The risk will increase. The complexity will increase. The criminals are always looking for vulnerabilities.”

He also noted that cryptocurrency is an emerging threat: “Crypto is very much a part of the financial system now. But in what format, at what speed, with what outcome remains to be known.

“The speed at which crypto is evolving is posing a regulatory and enforcement challenge. Everyone is sort of struggling with it.”

The Kroll report found that while 74 per cent of respondents in Singapore said that the threat posed by cryptocurrencies is a moderate to significant concern in 2025, only 36 per cent said their organisations have safeguards in place.

“It is a global fight. Crypto is even more international and global than any other things that we have dealt with,” Mr Tan said.