The effect of layering extends far beyond financial crimes. For banks and financial institutions, failure to detect such activities can result in regulatory sanctions and irreversible reputation damage. The impact reaches Governments that lose tax revenue that could otherwise support public services and national development.
A Central Bank Digital Currency (CBDC) is a digital currency issued by a country’s central bank to complement, rather than replace, cash. Unlike cryptocurrencies like Bitcoin, CBDCs are regulated by the government and aim to combine the convenience of digital payments with the stability of traditional money.
Shadow banks were identified as non-bank financial intermediaries that were key players in the flow of credit. These entities perform essential functions of lending and investing. In India, shadow banks not only survived the post-crisis impact but grew to become a pillar of the financial ecosystem.
Balancing both innovation and compliance is not only possible but essential for long-term success. Compliance, when designed well, doesn’t block innovation, but guides it and can ensure that financial institutions grow responsibly, protect customers, and build long-term trust.
Deepfakes are reshaping financial fraud, with synthetic identities, forged documents, and AI-driven impersonations bypassing KYC and AML checks. Governments and banks are responding with stronger biometrics, digital identity wallets, and stricter data protection laws. The future of compliance will rely on layered verification, AI anomaly detection, and collective vigilance.
The impact of fraud extends beyond financial losses, as it quietly obstructs the long-term potential of a business. Beyond the immediate financial hit, fraud can create a chain reaction of legal issues, regulatory non-compliance, and reputation harm that may take years to repair.
The global Banking, Financial Services, and Insurance (BFSI) sector is experiencing growth, with market capitalization projected to rise to around ~US$25 trillion by 2025. This growth is driven by digitalization and a demand for innovative products. At the forefront of this is Agentic Artificial Intelligence (AI), which boosts operational efficiency, enhances customer service, and ensures regulatory compliance.
As early as 300 BCE, Greek merchant Hegestratos attempted to sink his ship to claim insurance – a plan that highlights financial deception is not a modern issue and there are many examples of fraud infiltrating the highest levels of power. While tactics have evolved from forged documents to digital manipulation, the underlying motive remains … Read more
A 2021 FATF analysis found that over 50 jurisdictions had identified the misuse of professional services, especially legal and accounting, for money laundering. In India, the Enforcement Directorate has increasingly flagged professionals’ roles in high-profile cases, including setting up shell companies and routing funds offshore.
Data breaches surged by ~78%, exposing ~US$1.8 billion records globally, while Gartner predicts compliance spending will rise by ~40% by 2026. Once a back-office function, compliance has become a strategic priority, influencing business decisions and partnerships.