Driving a new era of financial crime prevention through AI-powered insights and data analytics

In 2024, financial institutions worldwide spent approximately US$206 billion on financial crime compliance, encompassing both technology and operational costs, according to LexisNexis Risk Solutions' True Cost of Financial Crime Compliance Report. Despite this significant investment, the scale of illicit financial flows remains staggering, with the United Nations Office on Drugs and Crime (UNODC) estimating that between 2% and 5% of global GDP—equating to US$800 billion to $2 trillion—is laundered annually.

This disparity underscores the evolving sophistication of financial crimes and the pressing need for more effective countermeasures. Financial institutions are increasingly adopting artificial intelligence (AI) and advanced data analytics to enhance their Anti-Money Laundering (AML) and fraud detection capabilities. As industry experts note, 2024 marked a significant shift from AI hype to practical implementation, with institutions moving beyond experimentation to deploy AI-driven solutions that improve transaction monitoring, customer due diligence, and overall financial crime prevention strategies.