SG executives report low trust in crime compliance programmes

The report cited weak technology adoption and underinvestment as key reasons behind compliance ineffectiveness.

Only 24% of senior executives in Singapore believe their financial crime compliance programmes are “very effective,” despite 76% expecting financial crime risks to rise in 2025.

This gap between risk perception and readiness was revealed in Kroll’s 2025 Financial Crime Report. The figure is especially concerning as it exceeds the global average of 71%, indicating heightened concern in Singapore.

The report cited weak technology adoption and underinvestment as key reasons behind compliance ineffectiveness. Only 26% of respondents strongly agree their organisations sufficiently invest in and leverage technology for financial crime prevention.

Cybersecurity and the criminal use of AI emerged as the top threats, identified by 68% and 61% of respondents, respectively. These concerns outweighed other risk drivers like predicate crimes, political instability, and financial pressures on individuals.

Whilst many firms are adopting AI to strengthen detection efforts, only a quarter of those using such tools report a “very positive” impact.

Cryptocurrencies also pose a growing risk. Seventy-four percent of executives see them as a moderate to significant concern, yet just 36% say their compliance programs currently address crypto-related threats. An additional 32% are planning to integrate such measures in the future.

Preparedness for geopolitical risk is also lacking. Fewer than 4 in 10 respondents say they are confident in their ability to manage sanctions or assess supply chain vulnerabilities. This comes amidst an increasingly complex regulatory environment, with 55% of respondents globally expecting tougher enforcement in the year ahead.

The report is based on a survey of over 600 professionals from financial and regulated industries conducted globally between September and October 2024.