Rise in financial crimes bodes well for regulatory tech

THE 21st century, a digital and truly converged era where disruption is increasingly routine, has brought a sea change not just in the nature, but also the frequency and complexity of financial crime. Money laundering, bribery and corruption, tax evasion, fraud, sanctions violations, insider trading, market misconduct - all variants of financial crime - attack the integrity of financial systems across the globe.

A US$2.1 trillion problem, financial crime is arguably one of the world's largest and most profitable industries. Bizarrely enough, if compared with the estimated 2017 gross domestic product of the globe's largest economies compiled recently by the World Economic Forum, financial crime would rank at No 9 - just behind Brazil and ahead of Italy.

The extent of the problem can also be seen in the recent "Russian Laundromat" scandal. This scandal saw US$20 billion moved out of Russia to 732 banks across 96 countries, including China, and Hong Kong. It not only highlighted the transnational nature of financial crime, but also illustrated the breadth of the challenge for the stewards of the global financial system; financial institutions and regulators equally.