Throughout 2024, the financial sector was vigilant in the fight against financial crime. But what lies ahead in financial crime prevention in 2025? In a recent webinar, financial crime prevention experts from SymphonyAI discussed the key takeaways from last year and made predictions for the year ahead.
The panel comprised financial crime and compliance subject matter and AI experts from SymphonyAI:
- Charmian Simmons (Europe, Middle East, and Africa SME);
- Craig Robertson (Asia-Pacific SME)
- Elizabeth Callan (North America SME)
- David Lehmani, head of AI incubation
This in-depth conversation covered the critical components of financial crime prevention, focusing on regulation, technology, and AI.
2024 recap: A year of regulatory changes and technological innovation in financial crime prevention
Regulation: A global perspective
2024 was a big year for global regulatory developments in financial crime prevention.
Elizabeth Callan highlighted how FinCEN extended AML regulations to registered investment advisors in North America, marking a significant shift in oversight. “They pointed it out as a key priority for the US to regulate that sector of financial services… it’s a risky sector in terms of oligarchs, other sanctioned entities, and individuals parking money,” she said. “The implementation time is very short. We’re already seeing firms frantically look to acquire technology.”
In the Asia-Pacific (APAC) region, FATF’s 5th round of mutual evaluations provides in-depth country reports analyzing the implementation and effectiveness of measures to combat money laundering, terrorism, and proliferation financing, as noted by Craig Robertson. Significant reforms, such as Australia’s Tranche 2, underscore the emphasis on strong compliance frameworks.
“There’s a huge amount of preparation in countries like Singapore and Malaysia,” Robertson said, highlighting the regulatory readiness for mutual evaluations that are already underway, “And then you’ve got a couple of [other] countries in the region too still working their way through the great list process.”
Robertson also spoke about the gaming industry, particularly in Singapore and the Philippines, and how the gaming sector has been scrutinized for money laundering, beneficial ownership, and corporate transparency, prompting collaborative efforts between industry and government. Within Australia, the focus has been on sports betting and ensuring companies are regulated appropriately.
Perhaps the biggest shakeup of regulation in 2024 was in Europe, where the EU began setting up its Anti-Money Laundering Authority (AMLA) in Frankfurt. Charmian Simmons described AMLA’s mission as ensuring “consistent application of EU rules across the Union.” (Simmons has recorded an insightful 12-minute video on how financial institutions can anticipate the change that AMLA will bring.)
She also spoke about the Financial Action Task Force (FATF), its new presidency, and how it emphasizes consistency in AML practices worldwide.
Given the breadth of regulatory changes within financial crime prevention, which remain ongoing this year, financial institutions have had to adapt quickly. They will continue to need to do so to remain in compliance in 2025. This involves only updating internal policies and procedures and investing in new technologies and systems. These developments call for a more dynamic approach to regulation, where institutions must remain agile and responsive to new regulatory requirements and guidance.
Technology: bridging legacy systems and new solutions
The influx of new regulations has complemented technological advancements that are essential for financial crime prevention. David Lehmani highlighted 2024 as a pivotal year for AI in financial compliance. “It’s getting easier to give AI updates because there seems to be a new thing every week,” he said, elaborating on key technological innovations such as OpenAI’s reinforcement learning for prompt engineering that promises more dependable AI-driven solutions and Anthropic’s computer-use concept that bridges new tech with legacy systems. Describing this as “a large language model and AI interacting through traditional means,” Lehmani sees this as a crucial trend for companies integrating their current software and systems with AI.
Even so, the challenge of combining the latest AI-led financial crime prevention solutions with existing legacy systems remains a significant hurdle for many financial institutions. The balancing act of maintaining existing processes while learning and adopting new ones requires strategic planning and investment to avoid service disruptions. This ensures that new technologies like AI and machine learning complement rather than complicate the existing approach.
The trend towards using AI to enhance legacy systems underscores the importance of developing flexible, scalable solutions that can evolve alongside regulatory changes and technological advancements. Banks and other financial institutions are increasingly seeking technologies that provide comprehensive solutions that seamlessly integrate with existing infrastructure and offer advanced financial crime prevention capabilities. Moving to SaaS delivers many of these benefits out of the box.
AI: Moving beyond the hype
AI continued to transform financial crime prevention practices in 2024, evolving in the eyes of the masses from hype to practical implementation. Banks and other financial organizations are no longer just experimenting; they are pushing for integration and practical applications of AI, particularly in machine learning.
“If 2023 was the year of hype,” Lehmani said, “2024 was getting down into the weeds.” This signifies a significant shift towards institutions now being more educated on the benefits of AI and how to use it in meaningful ways.
This transition from hype to reality involves a deeper understanding of AI’s potential applications and limitations, with companies initiating a more nuanced approach that considers how AI can be strategically used to enhance financial crime detection and prevention. This includes using predictive AI and generative AI for tasks such as AML transaction monitoring, fraud detection, and customer due diligence (CDD), where automation and advanced analytics provide significant efficiency gains.
Furthermore, the focus on practical applications has driven significant investment in skills development and training, ensuring that financial institutions have the expertise required to effectively deploy and manage these new solutions. This shift towards a more informed, strategic approach to AI adoption is essential for realizing its full potential in preventing financial crime.
Looking ahead: Predictions for financial crime prevention in 2025
Regulation
The panel expressed anticipation for continued regulatory evolution within financial crime prevention in 2025. Charmian Simmons noted the ongoing impact of AMLA in Europe, predicting further directives and technical standards. She emphasized the importance of adapting to new frameworks, stating, “2025 is going to be a year that we’re really going to have to adjust to what we’ve seen come into play.”
Elizabeth Callan agreed, with adjustments not coming much bigger than a new presidency in the US. She emphasized potential shifts under a new Republican administration led by Donald Trump, which may alter foundational AML legislation. Callan warned of “a potential rollback of our BSA [Bank Secrecy Act],” underscoring the uncertain regulatory path.
Craig Robertson added that collaborative efforts in Asia-Pacific to refine mutual evaluations and improve compliance suggest a promising regulatory future.
With 2025 now here, financial institutions must remain vigilant in understanding and preparing for these regulatory changes. This includes actively engaging with regulators, staying informed on evolving requirements, and investing in compliance. Institutions that proactively adapt to changing regulations are better positioned to mitigate risks and maintain strong compliance, which enhances customer trust.
Additionally, the trend toward harmonization and collaboration across countries and jurisdictions highlights the need for financial organizations to adopt a global perspective on regulatory compliance. By aligning their practices with international standards and implementing best practices, institutions can navigate these complexities more effectively.
Technology and operational challenges
Financial crime prevention in 2025 will focus on flexible technology solutions that allow rapid adaptation to new regulations. Lehmani stated, “There are two areas that my team is focusing on. One is helping our customers navigate operational challenges, and the second is improving their ability to react quickly and flexibly to emerging regulations. Through our Lighthouse program, we’re keen to tackle the problems our customers bring to us.”
Operational challenges in financial crime prevention often stem from the complexity of modern financial systems, the difficulty of using legacy software to combat these issues and the need for institutions to manage vast amounts of data efficiently. Breaking down silos and implementing new technologies such as AI and machine learning can help streamline processes, enhance data analysis capabilities, and improve overall operational effectiveness.
Institutions are also focusing on enhancing risk management frameworks to better identify and mitigate financial crime risks. This includes using advanced analytics and predictive modeling to gain insights into emerging threats and develop proactive strategies for prevention in the year ahead.
AI and innovation
AI advancements will continue to be integral to financial crime prevention in 2025. The conversation revealed an industry keen to further explore agentic AI, particularly its applications in AML transaction monitoring and sanctions screening. Institutions aim to harness agentic AI’s potential to improve decision-making processes, enhance detection capabilities, and streamline compliance operations. “We’re going to see an increase in different types of AI techniques,” observed Charmian Simmons, indicating a continued evolution in AI applications, with some organizations being more willing to experiment and innovate than others.
The exploration of agentic AI in financial crime investigation represents a significant step forward in the quest for more sophisticated prevention solutions. By enabling AI systems to autonomously navigate complex tasks and environments, institutions can enhance their ability to detect and respond to financial crime in real-time. This includes developing AI models capable of understanding intricate networks of transactions, identifying patterns indicative of financial crime, and providing actionable insights to compliance teams and investigators.
As with all uses of AI at the corporate level, such technology requires a strong governance framework to ensure transparency, accountability, safety, and privacy. Institutions must establish clear guidelines and oversight mechanisms to manage AI-driven or AI-led decisions and maintain trust with governments, regulators, stakeholders, and customers.
Embrace the future of financial crime prevention with SymphonyAI
SymphonyAI is at the forefront of using AI technology to revolutionize financial crime prevention. With a comprehensive range of solutions, we empower financial institutions globally to navigate complex regulatory landscapes and optimize their compliance frameworks.
Upgrading your compliance program in 2025 requires a dynamic and forward-thinking approach, integrating the latest technologies and best practices to stay ahead of evolving financial crime threats. By implementing these strategies and using AI effectively, a company can significantly strengthen its compliance program, minimizing risk and enhancing its ability to prevent illicit activities.
For companies seeking to elevate their efforts further, exploring innovative solutions like SymphonyAI’s AML software, including transaction monitoring solution or the SensaAI for AML AI overlay, offers a promising pathway. SymphonyAI provides the latest, most advanced technology that enables organizations to analyze transactions with greater precision and agility, ensuring compliance with ever-more stringent regulations.
The webinar on global fincrime prevention predictions for 2025 is now available to watch on demand.
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