Financial crime typologies from Switzerland, the United Kingdom, and the Asia-Pacific – it’s a Global problem!!!

Switzerland, the United Kingdom, and the Asia-Pacific region have all recently released financial crime typology reports.

While each jurisdiction highlights threats specific to its region, what stands out more is the consistent pattern of vulnerabilities shared across fundamentally different financial systems.

In reading these typologies, a global picture of similarity emerges such as:-

• Use of professional enablers
• Virtual asset misuse  
• Shell and front companies  
• Trade-based money laundering  
• Abuse of high-value assets e.g. Switzerland (real estate/art), Asia Pacific (luxury/property)

These reports underscore the importance of international cooperation and robust regulatory frameworks to combat financial crime effectively. It's fascinating to see how different regions face similar challenges despite their unique financial systems.

TYPOLOGY REPORTS AND KEY HIGHLIGHTS BY REGION FROM SWITZERLAND, THE UNITED KINGDOM, AND THE ASIA-PACIFIC

United Kingdom – Typologies and Supervision Reports [x 3 reports]

• HM Treasury Supervision Report (2023 to 2024):
• https://www.gov.uk/government/publications/anti-money-laundering-and-countering-the-financing-of-terrorism-supervision-report-2023-24
• Typologies = Legal, property, and accounting professionals continue to be exploited.
• FCA Review on Money Laundering Through the Markets (January 2025):
• https://www.fca.org.uk/publication/corporate/money-laundering-through-markets-review-january-2025.pdf
• Typologies = highlights threats such as wash trading, spoofing, and trade-based laundering.
• UKFIU SARs Annual Report 2024:
• https://www.nationalcrimeagency.gov.uk/who-we-are/publications/747-sars-annual-report-2024/file
• Typologies = identifies APP fraud, mule networks, synthetic IDs, shell companies, and sanctions evasion (via DAML requests) as key concerns.

Switzerland – MROS Typologies Report 2025 =

• https://www.comsuregroup.com/news/switzerlands-fiu-releases-its-first-ever-financial-crime-typology-report/
• https://www.bj.admin.ch/dam/fedpol/en/data/kriminalitaet/geldwaescherei/mros-typologiebericht-2025-e.pdf.download.pdf/mros-typologiebericht-2025-e.pdf?utm_source=chatgpt.com

• Typologies
• Nostro Account Abuse: Correspondent banking is being misused to disguise the source and movement of illicit funds.
• Virtual Assets: Crypto transactions play a central role in layering and integration, with DeFi platforms flagged as a growing blind spot.
• Shell Companies: Cross-border corporate vehicles remain a preferred tool for obscuring ownership and transactions.
• Real Estate & Art: High-value assets are commonly used to integrate criminal proceeds, especially where valuation lacks transparency.
• Sanctions Evasion: Tactics to bypass Russia-related sanctions are becoming increasingly sophisticated and prevalent.

Asia Pacific – APG Regional Typologies Report (Nov 2024)

• https://apgml.org/news/details.aspx?pcPage=1&n=7228 / https://apgml.org/includes/handlers/get-document.ashx?d=b05ccabd-ffe1-4ff7-aae1-afd0c63eddb8

• Typologies
• Casinos & Gaming: Still used for placement and layering, particularly in jurisdictions with weak oversight.
• Trade-Based Money Laundering: Common in regional trade hubs, involving over- and multiple invoicing techniques.
• Digital Payment Channels: Mobile wallets and informal value transfer systems are frequently misused where banking access is limited.
• Professional Enablers: Legal and financial professionals act as intermediaries in complex, often opaque, financial structures.

The findings from these financial crime typology reports have several significant implications:

1. Enhanced Regulatory Measures

Regulators may implement stricter controls and guidelines to address the identified vulnerabilities. This could include:

• Tighter regulations on virtual assets to prevent misuse.
• Increased scrutiny of professional enablers such as lawyers and accountants.
• More stringent requirements for transparency in the ownership of shell and front companies.

2. Improved Detection and Prevention

Financial institutions and other stakeholders can use these typologies to better detect and prevent financial crimes. This might involve:

• Enhanced due diligence procedures for high-risk transactions and clients.
• Advanced monitoring systems to identify suspicious activities related to trade-based money laundering and the misuse of high-value assets.
• Training programs for employees to recognize and report suspicious activities.

3. International Cooperation

The global nature of financial crime necessitates stronger international collaboration. This could lead to:

• Shared intelligence and best practices among countries to combat financial crime more effectively.
• Joint investigations and enforcement actions to dismantle cross-border criminal networks.
• Harmonization of regulations to ensure consistency in combating financial crime across different jurisdictions.

4. Increased Awareness and Education

Raising awareness about these typologies can help various stakeholders understand the risks and take proactive measures. This includes:

• Public awareness campaigns to educate individuals and businesses about the dangers of financial crime.
• Workshops and seminars for industry professionals to stay updated on the latest trends and typologies.

5. Policy Development

Governments and policymakers can use these findings to develop more effective policies and strategies to combat financial crime. This might involve:

• Legislative changes to close loopholes and strengthen the legal framework.
• Resource allocation to ensure adequate funding and support for regulatory and enforcement agencies.

Overall, these findings highlight the need for a comprehensive and coordinated approach to tackle financial crime on a global scale. By addressing these vulnerabilities, we can create a more secure and transparent financial system.