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  1. Analysis
December 10, 2019

ThetaRay’s Gazit: money laundering will raise its ugly head in 2020

By Mark Gazit

Mark Gazit, CEO of ThetaRay, predicts a resurgence of trade-based money laundering in the coming year.

It’s an avenue that people haven’t focused on recently because they’ve been concentrating on financial cybercrime, but it’s easy to implement and simple to keep shielded from financial detection.

Because we live in a connected world, trade is increasingly moving online, so trade-based money laundering will likely become an even larger part of financial cybercrime in 2020.

We might see the first sign of IoT-based financial crime as well, due to advancements like Google’s plan to offer checking accounts, Apple Pay, and possibly Facebook’s Libra.

Opportunities for cybercriminals

These technologies will provide opportunities for a new type of cybercriminal who utilizes next generation payment providers to hack into accounts and not only access customer data, but steal money as well.

In 2019, regulatory enforcement increased – not only for financial institutions but for their executives. We’ve seen firings, arrests, and even the suicide of Danske Bank Estonia’s former CEO.

This trend will continue in 2020, with governments finding executives liable for human trafficking, terror funding and other crimes whose proceeds are laundered through the financial system.

Greater caution about money laundering

Institutions will become more cautious about potential money laundering not just because of regulation and compliance, but because they will be under greater public scrutiny for their

perceived role in these crimes. To protect themselves, they will likely invest in new AI-based solutions, such as ThetaRay’s Artificial IntuitionTM.

Regulators will become more open to banks using advanced AI systems to identify unknown and unexpected threats. However, explainability and transparency of AI systems will be crucial.”

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