Is the fight against financial crime failing? experts call for radical change!

By Puja Sharma

Anti-money laundering (AML) automation company Strise announces the launch of its AML Megaminds Report, which brings together the knowledge of more than 80 leading experts across the financial crime landscape.

Through AI-driven analysis, the report delivers key insights on the effectiveness of sanctions, the inefficiency of current AML systems, and the transformative potential of emerging technologies like AI and machine learning. At the heart of the report is a call for greater collaboration, smarter technologies, and an industry-wide shift from reactive to proactive strategies.

Pioneering the use of AI in financial crime intelligence

What sets The AML Megaminds Report apart is its pioneering use of artificial intelligence to extract and synthesise expert insights. Leveraging AI technology, Strise analysed countless hours of interviews to uncover deeper connections and trends that would otherwise remain hidden. The result is an authoritative, data-backed resource that is both forward-thinking and practical.

Marit Rødevand, CEO & co-founder of Strise and The Laundry host, said: “This report is a game-changer. By using AI to weave together the experiences and insights of over 80+ financial crime professionals, we’re offering a uniquely holistic view of the industry’s most critical challenges and opportunities. It’s an invaluable tool for anyone involved in financial crime prevention, and we’re proud to be at the forefront of this innovation.”

Marit continued: “Financial crime impacts every facet of society, and we can no longer afford to operate in silos. This report is not only a synthesis of expert opinion but a catalyst for change. We can’t keep doing the same things and expect different results. The inefficiency identified by the majority of experts signals that it’s time for a paradigm shift in how we approach AML efforts.”

Key insights:

• Is the fight against money laundering failing? An overwhelming 70% of AML professionals agree that current measures are inefficient, citing outdated legacy systems, fragmented data, and overwhelming false positives as major obstacles. One expert emphasised that “relying on outdated technology is like bringing a knife to a gunfight” calling for urgent modernisation of AML infrastructure.
• Is the industry suffering from sanctions fatigue? While sanctions remain a vital tool, 40% of experts believe they are not fully effective. Many questioned their long-term impact and pointed to issues such as “sanctions fatigue” and the potential for driving illicit activities further underground. Others, however, highlighted success stories such as the freezing of Russian oligarchs’ assets, showcasing the importance of better-targeted sanctions and stronger enforcement.
• What urges boards to make financial crime prevention a priority? 35% of experts agree that regulatory pressure is the primary driver for making financial crime prevention a priority at the senior management level. The threat of significant fines and reputational damage compels boards to focus on compliance and crime prevention initiatives.
• What are the top threats in financial crime? Experts warn of rising threats, including cyber-enabled financial crimes, sophisticated sanctions evasion techniques using decentralised finance (DeFi), and the expansion of professional money laundering networks. Emerging technologies are making financial crimes more complex and harder to detect.
• What are the biggest solutions for tackling financial crime? Reframing financial crime as a public health issue could allow governments to allocate resources similarly to how they handle pandemics, with emergency powers to freeze assets, force cooperation from private entities, and impose mandatory reporting for suspicious activities. Other solutions include mandating the use of AI for all financial institutions, traditional banking secrecy laws, or creating public beneficial ownership registries with blockchain verification.
• Will AI play an important role in shaping AML’s future? The majority of experts – 70% – are optimistic about AI’s potential to improve AML efforts by automating repetitive tasks, reducing false positives, and allowing investigators to focus on high-risk cases. However, 10% voiced concerns about over-reliance on AI, cautioning against “black box” decision-making that lacks transparency and human oversight.
• What are the emerging money laundering hotspots? The report identifies real estate as the sector that is most vulnerable to money laundering, followed by cryptocurrency, luxury goods, and gambling. Experts note that the high-value nature of these markets, combined with minimal oversight, makes them prime targets for illicit financial activity. Cryptocurrency, in particular, has seen rising use of decentralized finance (DeFi) platforms and mixers to obscure the origin of funds.
• What are the top jargon terms in the industry? The use of terms like “compliance theatre”, “regulatory spaghetti”, and “red tape jungle” not only adds colour but also reflects deep-seated frustrations within the industry.

Patrick Skjennum, CTO & co-founder at Strise, added: “Artificial Intelligence isn’t just a buzzword; it’s a powerful tool that can help us outpace criminals. The optimism shared by experts reflects the transformative potential AI holds for the future of AML.”