WASHINGTON (dpa-AFX) - A new research that tracks evolving financial and economic crime risks says that financial crime remains an alarming global concern, with illicit financial flows projected to surge between $4.5 trillion to $6 trillion by 2030.
Money laundering, fraud, bribery, and market abuse continue to evolve and become more sophisticated, fueled by shifting geopolitical and regulatory priorities, rapid advancements in virtual assets, decentralized finance (DeFi), artificial intelligence (AI), and machine learning, according to Secretariat, the leading global legal, risk, and regulatory advisory firm.
Its inaugural Global Financial and Economic Crime Outlook 2025 provides a comprehensive analysis of financial and economic crime threats worldwide. The report maps jurisdictional risks, assesses emerging crime trends, and introduces the Secretariat Economic Crime Index - a country-by-country risk assessment measuring financial and economic crime factors impacting business viability.
'The financial crime landscape is shifting at an unprecedented pace,' says Secretariat Managing Director Bhavin Shah. 'Our report equips organizations with the intelligence they need to navigate these complex risks, anticipate threats, and implement proactive safeguards.'
The rise of AI-driven fraud is one of the key findings of the report. The use of AI in financial crime is accelerating, with deepfake fraud, automated money laundering, and AI-powered identity theft posing growing threats.
Equally alarming is the virtual asset risks. Cryptocurrencies and DeFi platforms continue to be exploited for illicit transactions, underscoring the urgent need for stronger global regulatory oversight.
In an era of evolving compliance challenges, enhanced global cooperation and real-time monitoring are essential to combat financial crime effectively, the study says.
At the core of the report is the Secretariat Economic Crime Index, which analyzes financial and economic crime risks across 177 countries.
19 countries lead in financial crime prevention, with strong enforcement and transparency. The top five countries are Finland, Denmark, Iceland, Luxembourg, and Estonia.
Characterized by entrenched corruption and systemic financial crime, 16 nations struggle with illicit financial flows that are deeply embedded in their economies, making enforcement efforts largely ineffective. The bottom five countries on the index are the Democratic Republic of Congo, Venezuela, Afghanistan, South Sudan, and Myanmar.
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