Despite rising financial crime risks, only a small percentage of executives in Hong Kong believe their organizations’ compliance programs are adequately equipped to tackle these threats, according to Kroll’s 2025 Financial Crime Report.
The survey, which gauged the views of business leaders across the region, revealed that 70% of respondents expect financial crime risks to increase in 2025. However, only 18% rated their organization’s compliance program as “very effective.” The findings highlight significant challenges in the fight against financial crime, with many businesses struggling to ensure their compliance measures are sufficient.
Key Challenges: Lack of Investment and Technology
Among the most pressing issues are inadequate technology and insufficient funding for compliance programs. Only 24% of respondents strongly agreed that their programs receive adequate financial support, while just 22% expressed confidence in their governance structures. These gaps in technology and oversight are viewed as significant barriers to improving compliance effectiveness.
Emerging Threats: Cybersecurity and AI-Driven Crime
The survey also identified emerging threats that are expected to dominate in the coming year. Cybersecurity and AI-driven financial crime are top concerns, with 66% of respondents indicating these areas will pose major risks in 2025. Despite increasing reliance on AI and machine learning tools, only 14% of those adopting these technologies reported a “very positive impact” on their compliance programs. Meanwhile, 56% expressed concerns about AI’s potential to create compliance challenges.
Cryptocurrency and Geopolitical Risks
Cryptocurrencies remain another significant threat, with 62% of executives seeing them as a moderate to severe financial crime risk. However, only 28% said their compliance programs address crypto-related threats, and just 20% planned to incorporate such measures in the near future.
Geopolitical risks, particularly sanctions, were also flagged as concerns. Only 26% of respondents felt their programs were adequately prepared for shifting sanctions policies. Less than 30% expressed confidence in their ability to screen for sanctions effectively, and fewer than 20% were highly confident in managing supply chain risks.
Political Instability and Rising Crimes
In addition to cybersecurity, political instability was also highlighted as a top concern, with 33% of executives citing it as a significant risk. Despite these threats, only 28% of respondents felt “very prepared” to manage the challenges posed by cybersecurity and political instability.
Financial Crime Enforcement: Fines and Penalties
The report further noted that 14% of executives reported receiving fines or enforcement notices in the past year due to compliance failures related to financial crime.
As financial crime risks continue to rise, the survey underscores the urgent need for businesses in Hong Kong to invest in robust compliance measures, leverage advanced technologies, and strengthen governance structures to stay ahead of evolving threats.
Related topics
