Rising inflation and the increasing likelihood of a recession are contributing to many peoples’ economic anxieties – and enabling criminals to recruit money mules into their money laundering operations. According to the newest report from Feedzai, The State of Global Anti-Money Laundering Compliance, 74% of surveyed global banks said money mules were the most common money laundering technique they encounter. In fact, money mule threats have become so severe that some banks are warning customers that they could face prison time for their participation.
This insight into the scope of the money is just one of several exclusive insights outlined in the report – based on input from over 630 anti-money laundering (AML) compliance professionals. Participants responded to 19 questions in four categories on the state of money laundering.
The AML report includes several exclusive data points that provide insights into the current state of global AML efforts. Among the report’s key findings:
- A crypto shift is underway: A majority of respondents (56%) reported that multi-customer, cross-wallet activity was the second most common money laundering tactic for AML professionals. Criminals are turning to crypto exchanges because it enables them to move funds between bank accounts while avoiding detection
- Data sharing is critical to curbing money launderers’ efforts. Many AML professionals believe a RiskOps approach at their organization will lead to smoother data sharing, enabling teams to identify money mules and other suspicious activities faster. However, the report finds one-fifth of organizations don’t share data.
- 15% said they don’t know if they share data
- The report also reveals a significant disconnect between fraud and AML analysts and managers. Most respondents (59%) said their organization does not allow data sharing between fraud and AML divisions. Yet, 53% of surveyed managers said they do allow data sharing.
- 54% of respondents say reducing false positives and improving accuracy is their top AML priority
- 54% of respondents identified accessing broader and deeper external data on individuals as their top data challenge
- 27% said they do not check social media as part of their due diligence process.
