Investment management has conventionally been exposed to lower inherent risks in comparison to other sectors. However, as criminals seek out new ways to exploit the financial system, they have found additional vulnerabilities in wealth and asset management, notably when clients have multiple accounts across different jurisdictions or when there is low visibility of beneficial owners of assets traded. As a result, it is more important than ever for wealth and asset managers to fine-tune their financial crime risk management controls and develop a strong understanding of the risks they face, as well as the emerging financial crime threats they may potentially be exposed to.
This paper seeks to examine financial crime risks in investment management, understand current regulatory frameworks and rules pertaining to the industry, and assess the challenges that investment managers face in terms of financial crime compliance.
PwC recently estimated an increase in total global assets under management from US$112 trillion in 2020 to as much as US$147 trillion in 2025.
"Asset & Wealth Management Revolution:
The Power to Shape the Future,” PwC, 2020