TACKLING FRAUD AND MONEY LAUNDERING WITHIN ASIA PACIFIC FINANCIAL INSTITUTIONS
R&C: Could you provide a general overview of the extent to which financial institutions (FIs) in the Asia Pacific region are at risk from fraud and money laundering activities?
Peck: While all organisations and individuals are at risk of becoming victims of fraud, financial institutions are a particular target for fraudsters because they hold vast sums of cash. Not only do fraudsters, both employees and external parties, target financial institutions directly, they also target the institution’s customers and in many cases a loss resulting from a deceived customer is borne by the financial institution. Money laundering is also an ongoing risk that financial institutions must manage. In 2015, the Australian Crime Commission estimated the cost of serious and organised crime in Australia to be at least AU$36bn a year, and in its most recent report, the Australian Criminal Intelligence Commission identified money laundering as one of six ‘key enablers’ for serious and organised crime. In order for criminals to freely access this cash it needs to be laundered and of course, financial institutions are a key component in the money laundering process.
Jan-Mar 2018 Issue