Table of Contents
A recent report by Forrester Research has identified the Asia-Pacific region as a hotbed for money laundering, with criminals exploiting shell companies and the growing market for cryptocurrency. The report also highlights the use of new technologies such as artificial intelligence (AI) as effective tools to counter these crimes. The varied regulatory frameworks and enforcement across Asia-Pacific countries have led to a proliferation of shell companies, allowing criminals to exploit loopholes and conceal illicit funds. Additionally, the region's growing interest in cryptocurrency and the absence of a coherent regulatory framework have created opportunities for criminals to exploit the perceived anonymity and ease of cross-border transactions that cryptocurrencies offer. To counter these increasingly complicated acts of money laundering, banks and institutions across the region have been embracing new technologies such as generative AI, explainable AI, and behavioural biometrics. Furthermore, regulators are putting in place stricter rules to combat money laundering, especially when it comes to cryptocurrency. The report also highlights the increasing collaboration between financial institutions and regulators to address money laundering issues, particularly in the realm of data sharing.
