TBFC costs the global economy $1.6 trillion every year, posing an increasing challenge for financial institutions. Finextra, commissioned by Eastnets, surveyed banks in the summer of 2024 to investigate how institutional around the world are tackling this issue. The research found that internal fragmentation and complex regulatory environments pose critical challenges. 42% of global institutions struggle with siloed data and disconnected workflows, with European banks facing the greatest difficulties.

Crucially, internal fragmentation significantly impacts the effective fight against TBFC as responsibilities for associated risk are split, on average, between three and four departments in a single institution. In light of these challenges, banks are increasingly turning toward AI and automation to address the mounting issue of TBFC. 87% of banks expect AI to have a significant impact on their TBFC detection capabilities, and 91% are prioritising automation over the next twelve months. Gary Wright, research director, Finextra Research commented: “As trade-based financial crime evolves, conventional detection systems are falling short. This is an issue that affects our 45,000 members within the world’s leading banks and fintechs. We are delighted to share their viewpoints and priorities in this detailed report with our sponsor Eastnets.” Wright added: “We know financial institutions are facing mounting risks and increased regulatory scrutiny. The research shows they now need to overcome internal fragmentation and embrace advanced solutions that enable real-time insight and identify suspicious patterns in complex trade flows. AI and automation clearly represent the way forward for banks." Diya Innab, deputy CEO of Eastnets, added: “Our research reveals an urgent need for financial institutions to update legacy systems that are simply outpaced by modern financial crime.” You can read more about this research and download the report, Broken Inside, Broken Outside: The Global Fight Against Trade-Based Financial Crime, here.