Australian firms expect financial crime surge in 2025

Only a fourth of firms admitted their programmes are adequately equipped.

Sixty-four percent of Australian financial institutions expect financial crime risks to rise in 2025, but only 16% consider their organisation’s compliance programme “very effective,” according to Kroll’s 2025 Financial Crime Report.

A lack of technology and investment is a key issue, with just 28% strongly agreeing that their financial crime compliance programmes are adequately equipped. 

Governance weaknesses also contribute, as only 20% believe their organisation has a robust framework to oversee financial crime.  

Just over one-third said their compliance programmes are “very prepared” to handle geopolitical risks in the next 12 months, particularly amidst an evolving sanctions landscape. 

Fewer than four in ten respondents express high confidence in their programme’s sanctions screening capabilities.

The increasing use of artificial intelligence by criminals (80%) and cybersecurity threats (60%) are seen as major risks for the coming year. 

Other factors include a rise in predicate crimes (60%), financial pressure on individuals (40%), political instability (28%), and geopolitical risk (20%).  

Cryptocurrencies remain a concern, with 52% viewing financial crime threats linked to digital assets as a moderate to significant risk. 

Currently, 28% say their compliance programmes account for cryptocurrency-related risks, whilst 24% plan to do so in the future.  

Only 36% of respondents are highly confident in their compliance programme’s ability to assess supply chain threats. 

The most significant risks involve cybersecurity (56%) and political instability (28%), though 40% believe their compliance programmes are “very prepared” to address these challenges in the coming year.