A recent survey has uncovered that a significant 42 per cent of regulated firms in the UK are currently facing a surge in financial crime attempts, with over a quarter of these firms falling victim to such criminal activities. The data also revealed a substantial increase in financial crime attempts among legal professionals, solicitors, and conveyancers, with the figure rising to 48 per cent in 2023 from 34 per cent in the previous year.
Estate agents and other property professionals have reported the most significant rise in financial crime attempts, soaring from 17 per cent in 2022 to 37 per cent in 2023. Conversely, firms operating in the finance sector have experienced a decrease in financial crime, dropping from 54 per cent in 2022 to 41 per cent. Nevertheless, a considerable 41 per cent of finance firms still reported a rise in financial crime attempts.
The survey’s alarming statistics also revealed that over a quarter of regulated firms have fallen victim to financial crime in the past six months, more than double the number reported in 2022. The number of property firms falling prey to financial criminals has increased almost fivefold since 2022, reaching 29 per cent, while finance firms falling victim to financial crime have more than doubled to a third, from 14 per cent in 2022.
In light of these escalating threats, experts emphasize the importance for regulated firms to strengthen their existing security measures and ensure that their compliance checks remain robust. According to the survey, it is imperative for regulated firms in the legal, property, finance, and accountancy sectors to remain proactive in combating financial crime.
The survey, which involved over 500 decision-makers in regulated UK businesses, was commissioned by SmartSearch. Managing director, Martin Cheek, voiced his concern, emphasizing that regulated firms are at the forefront of the battle against financial crime within the UK’s financial system. He highlighted the need for these firms to remain vigilant and proactive in preventing money laundering and the legitimization of illicit funds.
Furthermore, Cheek stressed the importance of implementing a digital compliance strategy, supported by the latest technology and real-time data, to seamlessly integrate compliance processes into client onboarding and ongoing monitoring. In the face of increasingly sophisticated criminals, tools such as electronic verification and digital platforms have become essential, with electronic verification being recommended as a crucial safeguard by the 2020 Money Laundering and Terrorist Financing Act.
The findings of the survey serve as a stark reminder of the growing threat of financial crime within regulated firms. It is crucial for these firms to remain vigilant, embrace technological advancements, and fortify their compliance processes to effectively combat the rising tide of financial crime. The survey results also underscore the pressing need for ongoing collaboration between regulatory bodies and the private sector to develop and implement effective measures to counter financial crime.
+ There are no comments
Add yours