Financial Crime 2.0

The Financial Crime 2.0 research project explores the impact of new technologies on financial crime and proposes improvements to current financial crime responses.




Main Image Credit Financial Crime 2.0


The project covers both opportunities offered by the effective use of new technology, including artificial intelligence and advanced data analytics, and threats emanating from the exploitation of technological advances.

The current (third) year of Financial Crime 2.0 started in April 2021, and examines the role of artificial intelligence and machine learning (AI/ML) in financial crime.

Project sponsors

The Financial Crime 2.0 research is currently sponsored by Lexis Nexis Risk Solutions.

The programme was sponsored by EY, Refinitiv and Lloyds Banking Group in its first year, and EY and Refinitiv in its second year.

Main Image Credit Financial Crime 2.0

Project focus

In the first two years, the project looked at:

  • The role of advanced data analytics in the work of supervisory and law enforcement authorities;
  • The contribution of technology to achieving effective prevention of financial crime as opposed to merely financial crime compliance;
  • Money-laundering techniques and typologies associated with the proceeds of cybercrime; and
  • Financial crime risks and vulnerabilities in online business sectors, including cryptocurrency, online gambling, online video games and e-commerce.

 

Ongoing Financial Crime 2.0 research includes the following two workstreams:

Artificial Intelligence and Financial Crime: Exploring the Art of the Possible.
There is a widespread perception that AI/ML technologies offer more effective and efficient ways of detecting money-laundering and terrorist-financing activity. This research will aim to deliver a comprehensive, evidence-based study of the extent to which this is currently the case or is likely to be the case in the near future.

Artificial Intelligence and Financial Crime: A Future Threat?
Since criminals have historically been agile in exploiting new technologies, concerns have been voiced about possible criminal use of AI/ML, for instance by using deep fakes to defeat anti-financial crime controls. This workstream will provide a balanced overview of risks and possible mitigation measures.

Project outputs


Access the key publications produced as part of this project.

Sharpening the Money-Laundering Risk Picture: How Data Analytics Can Support Financial Intelligence, Supervision and Enforcement
From Money Mules to Chain-Hopping: Targeting the Finances of Cybercrime
RUSI Newsbrief
When Bankers Need to be More Creative than Hackers: Cybercrime and Money Laundering
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Following the Whack-a-Mole: Britain First’s Visual Strategy from Facebook to Gab
Deep Impact? Refocusing the Anti-Money Laundering Model on Evidence and Outcomes
Understanding Financial Crime Risks in E-Commerce
Play Your Cards Right: Preventing Criminal Abuse of Online Gambling
RUSI Newsbrief
Gaming the System: Money Laundering Through Online Games
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From Intention to Action: Next Steps in Preventing Criminal Abuse of Cryptocurrency
The Heat is on Cyber-Criminals. But Are Governments Doing Enough to Tackle Rogue Cryptocurrency Exchanges?
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The Illusion of Simplicity: Which Virtual Currencies Businesses are Subject to Money Laundering Rules?
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Video Commentary


Watch the video analysis from this project.

Financial Crime Online: Beyond Our Reach?
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Financial Crime 2.0: Privacy Coins
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Financial Crime 2.0: The Decentralisation of Cryptocurrency and Financial Crime
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Financial Crime 2.0: E Gaming
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Project impact

During its first two years, the Financial Crime 2.0 programme resulted in coverage by media outlets including The Economist and the Financial Times, as well as presentations at conferences including the Cambridge International Economic Crime Symposium, ACAMS Europe, SWIFT Banking Forum London and multiple others.


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