Are Financial Institutions Ready for Criminals Who Play the Long Game?

The clock is ticking for financial institutions to transform both their fraud prevention and detection capabilities as 2026 heralds a new era of sophistication in financial crime.

The growth in popularity of crypto currencies is exacerbating the issue as they operate outside the confines of the traditional financial systems (although the Bank of England and Financial Conduct Authority is soon expected to introduce regulations around sterling-denominated systemic Stablecoins). Financial institutions attempting to offer innovative payment methods need to ensure it is coupled with stringent anti-fraud controls.

In the UK, regulations such as Failure to Prevent Fraud Act (FtPF) and the Authorised Push Payments (APP) reimbursement rules are seen as the first in a series of new fraud-related regulations, and on the continent AMLA has established a new authority for AML to strengthen Europe wide AML CFT rules and harmonise requirements across member states.

Cross-Border Fraud, Data Privacy, and the Promise of Federated Learning

International fraud is a serious issue for banks and financial services institutions, but to fully resolve this issue would require changes to data privacy laws globally.

International fraud is a serious issue for banks and financial services institutions, but to fully resolve this issue would require changes to data privacy laws globally.

Federated learning – a machine learning approach that trains a shared model across multiple devices or organisations without centralising their raw data – is becoming a major focus of attention as it is changing the way in which firms can detect these issues within different data sets. However, strict data privacy laws make it difficult for financial services firms to share data that could identify fraudulent transactions, or expose instances of money laundering, human trafficking or terrorist financing.

Artificial Intelligence: Transforming Financial Crime Detection While Raising New Risks

Financial services firms continue to cautiously adopt AI (Artificial Intelligence). It delivers both unprecedented opportunities and dangers for financial institutions, with AI-powered attacks – from deepfakes to false IDs – intensifying. How do you now know that your source information is accurate?

Given that sanctions’ violations are strict liability offenses, companies must pair AI tools with transparent frameworks, rigorous testing, and targeted manual oversight.

AI is accelerating automation across adverse media screening, client due diligence, transaction monitoring, and sanctions screening. Given that sanctions’ violations are strict liability offenses, companies must pair AI tools with transparent frameworks, rigorous testing, and targeted manual oversight.

On a more positive note, AI-driven risk modelling is being used to transaction monitoring tools on synthetic datasets to flag fraudulent activity, enabling institutions to move from reactive detection to proactive prevention.

Criminals Playing the Long Game: Why Institutions Must Act Now

At Projective Group, our deep expertise in financial crime highlights a stark reality: scams and fraud are both growing exponentially and becoming more sophisticated. Armed with AI and advanced technologies, those committing financial crimes now deploy long-term strategies that build trust gradually before striking.

With global fines for money laundering projected to reach $6 billion by the end of 2026, you cannot afford not to talk to us about how to take measures to combat the threat of financial crime.

Criminals are exploiting the lack of cross-border harmonisation, targeting gaps in defences where firms operate under different policies and regulatory requirements

Our teams can also explain the new EU AML (Anti-Money Laundering) package. Criminals are exploiting the lack of cross-border harmonisation, targeting gaps in defences where firms operate under different policies and regulatory requirements — these regulations are intended to address this issue.

We are also experts in helping clients to understand the non-financial risk landscape. Our analysis of the annual reports of 170 of the world’s largest financial service and legal firms has just been published. With a focus on ESG, the Non-Financial Sustainability Risk Benchmarking report is relevant to all non-financial risk managers.

Talk to us today to understand how to better respond to the challenges our sector will face in the year ahead.

Over Projective Group

Projective Group is opgericht in 2006 en is een toonaangevende change specialist voor de financiële dienstverlening.

We worden binnen de sector erkend als een provider van complete oplossingen, die samenwerkt met klanten in de financiële dienstverlening om oplossingen te bieden die zowel holistisch als pragmatisch zijn. We hebben ons ontwikkeld tot een betrouwbare partner voor bedrijven die willen gedijen en bloeien in een steeds veranderend landschap van financiële dienstverlening.