Our latest anti-financial crime (AFC) guru, Rezaul Karim, CAMS, is a highly experienced and internationally recognized compliance professional from Bangladesh with a demonstrated history of working in know your customer (KYC) compliance, anti-money laundering (AML) investigations, risk governance and effective handling of various financial crime and regulatory compliance issues. Karim has more than eight years of experience in the field and has worked for top multinational banks, including HSBC and Standard Chartered Bank. He is a Certified Anti-Money Laundering Specialist (CAMS), a Certified Cryptocurrency Investigator (CCI) and an International Compliance Association Certified Trade-Based Money Laundering Specialist (ICA-TBML). Karim currently serves as assistant vice president of Financial Crime Investigations at HSBC. Karim, who has contributed articles to ACAMS Today and ACAMSToday.org, was recognized by ACAMS as an AML Professional of the Month in 2020 and was the recipient of the prestigious CEO Award from HSBC for exemplary contributions in embedding a culture of compliance, conduct and risk management. Karim has been a speaker at international financial crime conferences in the U.S., the U.K. and Nigeria, and co-authored two international books on AML.

Question 1: What does the future hold for AML practices and technologies?

Rezaul Karim (RK): As we look toward the future of AML, we stand on the brink of a transformative era. The rapid advancements in technology and the evolving regulatory landscape are paving the way for a more robust and effective fight against money laundering. While we have already seen the use of artificial intelligence (AI), machine learning and biometric technology, in the future, we might see more advanced use of quantum computing, advanced DNA-based identification and multimodal biometrics, and real-time global surveillance integrating satellite data. Virtual reality (VR) and augmented reality (AR) will be used in training programs simulating complex money laundering scenarios to train AML professionals. These advancements will create a highly secure, transparent and efficient financial system, significantly reducing the risk and incidence of money laundering while ensuring robust compliance with global AML regulations.

Question 2: What role does technology play in detecting and preventing money laundering? What are some recent advancements in the industry?

RK: Technology certainly increases the overall effectiveness of AML/counter-terrorist financing (CTF) measures. AML/CTF technologies can improve the speed, quality and efficiency of identifying risks and focusing compliance efforts. Recent advancements in AML technology include the use of AI and machine learning for accurate transaction analysis, blockchain for transparent record-keeping and real-time transaction monitoring to quickly detect suspicious transactions. Moreover, biometric authentication and digital identity verification also enhanced KYC processes. Since technology continues to evolve, ongoing collaboration between industry stakeholders and regulatory bodies will be crucial to maintaining the momentum in combating money laundering globally. Overall, these technologies are not just enhancing compliance capabilities but also significantly reducing costs for financial institutions (FIs).

Question 3: What emerging financial crime risks do you foresee in 2025, and how should organizations prepare for them?

RK: The risks associated with money laundering are increasing as criminals continuously adapt and exploit technological advancements as well as regulatory gaps. Emerging trends in money laundering schemes include the use of cryptocurrencies, trade-based money laundering and real estate investments. Criminals are also employing professional money launderers, exploiting digital banking and fintech and using money mules. FIs are increasingly adapting to the evolving landscape of money laundering risks by embracing advanced technologies and enhancing their compliance frameworks. However, continuous investment in cybersecurity, employee training and a culture of compliance remains crucial to staying ahead of sophisticated money laundering schemes.

Question 4: What are your thoughts on deepfake technologies and their impact on AML efforts?

RK: The fast-paced changes in the digital world are presenting myriad opportunities as well as formidable challenges. Among these challenges, deepfakes have emerged in the form of a silent pandemic, which is threatening not only our digital integrity but also has become a major risk to AML efforts. Deepfake technologies present a multifaceted threat to AML due to their ability to produce nearly authentic and convincingly deceptive content. Criminals can abuse deepfake technology to conduct illicit activities, crafting a momentous challenge for FIs and law enforcement agencies in their fight against financial crimes. Addressing the challenge of deepfakes entails multifaceted tactics for AML professionals. Learning technical know-how in deepfake detection is extremely crucial. Moreover, FIs should invest in AI/machine learning technologies, which can be trained to identify inconsistencies in documentation or manipulated facial movements. Collaborative initiatives/efforts by FIs, financial technology companies, governments and regulatory bodies are also essential to proactively mitigate the threats posed by deepfake technology.

Mohammed Rezaul Karim, CAMS, compliance professional, rezaul.univdhaka@gmail.com,

The opinions provided above are solely those of Rezaul Karim and do not necessarily reflect the views of any organization with which he is affiliated.