The post Fraud, sanctions and money laundering. How do sanctions affect the fintech industry? appeared on BitcoinEthereumNews.com.

Fintech expert Sergey Kondratenko notes that sanctions – fines or bans imposed on individuals and organisations – significantly affect the Fintech sector. The fintech industry, which uses technology to improve or automate financial services and processes, is highly sensitive to the global regulatory environment. In 2023, challenges related to fraud, money laundering and economic sanctions compliance have become even more serious. According to statistics, between 800 billion and 2 trillion dollars are laundered around the world every year, which is approximately 2% to 5% of global GDP. Despite the scale of the problem, only about 0.1% of laundered money is recovered, indicating that current anti-money laundering methods are ineffective. With the rise of financial technology and increasing cyber threats, both governments and companies are faced with the need to strengthen measures to comply with economic sanctions. This has become increasingly challenging due to the increasing number and complexity of sanctions. Multinational companies must implement sophisticated technologies to ensure compliance and avoid serious financial and reputational losses. “Sanctions compliance remains an important part of global economic and political strategy, but it also poses challenges for companies that must comply with multi-layered and frequently changing regulations,” comments Sergey Kondratenko. This increases the responsibility of companies and requires them to actively work to implement risk management systems and adapt to new regulatory changes. Overall, these challenges highlight the need for a more proactive and adaptive approach to financial risk management and regulation to ensure stability in a rapidly changing global economic landscape. Sanctions can be divided into several types, each designed to apply pressure in different ways: Economic sanctions. These include trade barriers, tariffs and restrictions on financial transactions and assets. Diplomatic sanctions. Reduction or cessation of diplomatic relations such as embassies or diplomatic missions. Military sanctions. These include military intervention or arms…

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Filed under: News - @ June 29, 2024 11:20 am