Nasdaq Releases First Global Financial Crime Report, Measuring the Scale and Human Impact of Financial Crime
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Insights
The revelation of $3.1 trillion in illicit funds and money laundering activities in 2023, as reported by Nasdaq, underscores a significant challenge facing the global financial system. From an economic standpoint, the sheer scale of these illegal transactions represents a substantial leakage of capital that could otherwise contribute to legitimate economic growth and development. The siphoning of such vast amounts of money has implications for financial stability, potentially affecting currency values, interest rates and inflation.
It is crucial to consider the impact of these activities on business operations and investor confidence. The association of financial institutions with money laundering can lead to severe reputational damage, regulatory fines and a loss of shareholder value. Investors and stakeholders must be aware of the heightened risks and the importance of robust compliance measures within financial entities to mitigate these threats.
The report's findings on global financial crime highlight the legal complexities surrounding anti-money laundering (AML) and counter-terrorist financing (CTF) efforts. The staggering amounts involved in illicit financing activities such as drug and human trafficking, as well as terrorist financing, necessitate a vigorous legal response. The legal implications for businesses and financial institutions include the need for comprehensive due diligence, adherence to international AML standards and proactive cooperation with regulatory bodies.
Legal frameworks at both domestic and international levels must evolve to address the sophisticated methods employed by financial criminals. The report suggests that a more integrated approach could enhance the effectiveness of legal measures, which could lead to a more secure business environment and potentially reduce the legal risks and costs associated with non-compliance.
The Nasdaq report serves as a critical barometer for assessing the prevalence of financial crime and its broader implications on market dynamics. The identification of nearly $500 billion in fraud losses last year is particularly concerning for businesses, as it indicates a pervasive threat that can undermine consumer trust and corporate integrity.
Understanding the sectors and regions most susceptible to financial crime can inform market strategies and risk assessment models. For instance, companies operating in high-risk areas may need to invest more heavily in security and fraud prevention technologies. This could lead to shifts in market demand for such services, influencing the stock performance of companies specializing in fraud detection and cybersecurity solutions.
Report reveals
Global fraud losses totaled more than
NEW YORK, Jan. 16, 2024 (GLOBE NEWSWIRE) -- Today, Nasdaq released its 2024 Global Financial Crime Report, a comprehensive new research initiative that provides insights to help quantify the problem of financial crime globally, elevate emerging threats related to this illicit activity, and uncover potential solutions towards a more integrated approach in the fight against financial criminals. This report brings together expert research and data, industry perspectives, and the voices of survivors to provide a unique view into the scale and impact of financial crime.
“Financial crime exploits the most vulnerable members of our society and underpins many of the world’s most destructive crimes,” said Adena Friedman, Nasdaq’s Chair and CEO. “The fight against financial crime is a fundamental part of Nasdaq’s strategy as we partner with our financial services clients to advance the integrity of the global economy. With the data and insights from our new report, we look forward to expanding the global dialogue across the private and public sector, and to finding new ways to tackle this enormous challenge together.”
The 2024 Global Financial Crime Report found that more than
“Financial crime is a multi-trillion-dollar problem, but it has been difficult to measure the full size and scale of it,” said Brendan Brothers, Nasdaq’s Executive Vice President, Anti-Financial Crime and co-founder of Verafin. “This report is an important step towards understanding the scope of financial crime. By bringing together the numbers, with the perspectives of financial institutions and stories of human impact, we now have a deeply insightful view into the full scope of the problem. Financial institutions are on the front lines of preventing financial crime and protecting customers from harm — but they cannot do it alone. It is why we are at the forefront of bringing the entire ecosystem together to pioneer new ways to address this issue.”
Verafin, a Nasdaq company, has been a partner to the financial industry for decades and provides industry-leading cloud-based solutions to support financial institutions as they prevent fraud and uncover money laundering. Focused on delivering innovative anti-financial crime technology, today 2,500 financial institutions representing
The 2024 Global Financial Crime Report was produced by Nasdaq and Verafin in collaboration with Celent and Oliver Wyman and includes a custom data model of global financial crime developed from public and private sources, interviews with anti-financial crime professionals, and the stories of four courageous survivors of financial crime.
The full report can be found on https://www.nasdaq.com/global-financial-crime-report.
About Nasdaq: Nasdaq (Nasdaq: NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions, and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.
About Verafin: Verafin, a Nasdaq company, offers enterprise Financial Crime Management solutions, providing a cloud-based, secure software platform for Fraud Detection and Management, AML/CFT Compliance and Management, High-Risk Customer Management, Sanctions Screening and Management, and Information Sharing. More than 2,500 financial institutions use Verafin to effectively fight financial crime and comply with AML/CFT regulations. Leveraging our unique consortium approach, Verafin significantly reduces false positive alerts, delivers context-rich insights, and more effectively fights financial crime. To learn how Verafin can help your institution fight fraud, money laundering, and crimes such as terrorist financing, drug trafficking, human trafficking and elder financial exploitation, visit www.verafin.com or email info@verafin.com.
Media Contacts:
David Lurie
Head of External Relations, Nasdaq
David.Lurie@nasdaq.com
(914) 538-0533
Andrea King
Corporate Communications, Verafin, a Nasdaq company
Andrea.King@nasdaq.com
(709) 325-2385
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FAQ
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