A new report by Nasdaq Verafin titled Financial Crime Insights: Europe, has provided an updated analysis of the extent of financial crime across Europe.
Drawing from the 2024 Global Financial Crime Report and insights gathered from anti-financial crime professionals in the EU, UK, and Nordic regions, the report examines the scale and impact of illicit financial activities in the region.
The report estimates that approximately USD 750 billion in illicit funds moved through Europe's financial system, equivalent to 2.3% of the continent’s total GDP. Fraud-related activities accounted for significant losses, with an estimated USD 103.6 billion attributed to scams and bank fraud incidents.
One notable finding is the role of cross-border transactions in facilitating financial crime. Of the total laundered funds, USD 194.9 billion was transferred across borders, highlighting the challenges posed by international financial flows. The increase in cross-border transactions has provided new opportunities for illicit activities, making coordinated efforts among financial institutions and regulatory bodies more critical.
The report outlines the wider implications of financial crime, linking it to serious offences such as human trafficking, drug trade, terrorist financing, and fraud schemes targeting vulnerable individuals.
A representative from Nasdaq Verafin emphasised the need for a unified approach to tackling financial crime, stating that criminals operate beyond the constraints of borders and regulations. Strengthening collaboration among financial institutions, regulators, and industry stakeholders is essential to improving the effectiveness of anti-money laundering measures and safeguarding the financial system.
The report also highlights emerging trends in financial crime prevention across the European financial sector. Main priorities include enhancing collaboration between institutions, increasing regulatory alignment across borders, and leveraging technological advancements. Data-driven strategies and artificial intelligence are seen as instrumental in improving fraud detection and compliance efficiency.
Nasdaq Verafin, in collaboration with Celent Research and Oliver Wyman, has compiled these insights to offer financial institutions a clearer picture of the evolving financial crime landscape. The company has worked with banks and financial service providers to implement technology-driven solutions aimed at reducing financial crime risks and improving compliance efforts.
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