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The effectiveness of financial crime risk management reform and next steps on a global basis

A report from The Institute of International Finance and Deloitte

In 2019, Deloitte and the Institute of International Finance (IIF) published a white paper which lays out ways to address illicit financial flows through a combination of internationally consistent regulatory reform and an intelligence-led approach to financial crime risk management.  

Since then, noteworthy progress has been made around the world across several issues, building on years of good work spearheaded by the Financial Action Task Force (FATF) and the collective efforts of the public and private sectors to improve the way financial crime is identified, mitigated and – ultimately - prevented.

This new report builds on our 2019 paper, tracking progress against recommendations and bringing them up to date by  identifying key areas of focus for improving the global regulatory and supervisory architecture in this area. The content is based on our industry experience as well as an extensive series of interviews with financial industry AML/CFT compliance leaders, law enforcement, policy makers and regulators.

Report Overview

The first part of this paper, Global Outlook on Financial Crime Risk Management Reform, provides an overview of noteworthy financial crime risk management reform efforts underway within international standard setting bodies and a number of key jurisdictions.

The second part, A Way Forward on Continuing to Enhance Effectiveness in Financial Crime Risk Management, provides a framework for public and private sector stakeholders to continue to enhance the effectiveness of their anti-financial crime strategies through the implementation of recommendations in the following key areas:

  • The Use of Financial Intelligence
  • Risk Prioritisation
  • Technology and Innovation, and
  • International Cooperation and Capacity Building.

While it is recognised that the financial crime frameworks in different jurisdictions are at different levels of maturity, the global homogeneity of the drivers, effects and solutions concerning financial crime warrant a sustained, collective focus by the world community to continue to deliver outcomes which stop the criminal misuse of finance and its subsequent damage to society and financial stability.

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