Main Image Credit Financial Crime 2.0
The project covers both opportunities offered by the effective use of new technology, including artificial intelligence and advanced data analytics, and threats emanating from the exploitation of technological advances.
The current (third) year of Financial Crime 2.0 started in April 2021, and examines the role of artificial intelligence and machine learning (AI/ML) in financial crime.
The Financial Crime 2.0 research is currently sponsored by Lexis Nexis Risk Solutions.
The programme was sponsored by EY, Refinitiv and Lloyds Banking Group in its first year, and EY and Refinitiv in its second year.
In the first two years, the project looked at:
- The role of advanced data analytics in the work of supervisory and law enforcement authorities;
- The contribution of technology to achieving effective prevention of financial crime as opposed to merely financial crime compliance;
- Money-laundering techniques and typologies associated with the proceeds of cybercrime; and
- Financial crime risks and vulnerabilities in online business sectors, including cryptocurrency, online gambling, online video games and e-commerce.
Ongoing Financial Crime 2.0 research includes the following two workstreams:
Artificial Intelligence and Financial Crime: Exploring the Art of the Possible.
There is a widespread perception that AI/ML technologies offer more effective and efficient ways of detecting money-laundering and terrorist-financing activity. This research will aim to deliver a comprehensive, evidence-based study of the extent to which this is currently the case or is likely to be the case in the near future.
Artificial Intelligence and Financial Crime: A Future Threat?
Since criminals have historically been agile in exploiting new technologies, concerns have been voiced about possible criminal use of AI/ML, for instance by using deep fakes to defeat anti-financial crime controls. This workstream will provide a balanced overview of risks and possible mitigation measures.
Access the key publications produced as part of this project.
Sharpening the Money-Laundering Risk Picture: How Data Analytics Can Support Financial Intelligence, Supervision and Enforcement
From Intention to Action: Next Steps in Preventing Criminal Abuse of Cryptocurrency
The Heat is on Cyber-Criminals. But Are Governments Doing Enough to Tackle Rogue Cryptocurrency Exchanges?
Watch the video analysis from this project.
During its first two years, the Financial Crime 2.0 programme resulted in coverage by media outlets including The Economist and the Financial Times, as well as presentations at conferences including the Cambridge International Economic Crime Symposium, ACAMS Europe, SWIFT Banking Forum London and multiple others.