With geopolitical uncertainty front of mind, rapidly advancing technology development, particularly in artificial intelligence (AI), the events of the past year have only amplified the challenges of fighting financial crime in the Asia Pacific (APAC) region. Our latest research—based on a survey of executives across the region—can help leaders prepare for what’s next.
Cybersecurity and the use of AI and cryptocurrencies by criminals are seen as key areas of financial crime risk for 2025 across the five APAC countries surveyed. While there was some variation in the level of comfort in the effectiveness of organizations’ compliance programs to address these risks, most executives have concerns about the sufficiency of technology and investment.
Kroll's Financial Crime Report 2025: APAC Edition does a deep dive into trends and findings from senior executives across India, Australia, Japan, Singapore, Hong Kong conducted in Q4 2024.
Key Takeaways
Consistent with global survey findings, cyberattacks, the increased use of AI by cybercriminals and increased complexity of predicate crimes are the top three reasons why respondents expect financial crimes to increase in 2025. The increasing volume, value and complexity of criminal threats combined with rapidly evolving technologies are seen as the top reasons why governments are or will be losing ground in the fight against financial crime.
While advancements in technology are increasing financial crime risks, AI in particular is seen by respondents as a key component in fighting financial crime. The majority of respondents either strongly agreed or agreed that AI developments will benefit their financial crime compliance programs.
In an environment in which financial crime risks are increasing, a very significant proportion of respondents expect enforcement action will increase or remain constant in 2025 and that cooperation between regulators and financial institutions will increase or remain constant.
Anecdotally, there is an increased focus on AML regimes across the APAC region, including a broadening of AML regulations to capture sectors such as real estate, high-value goods dealers and service providers such as lawyers and accountants.
