Financial Crime Enforcement Will be a Top Priority Under Trump Presidency

Banking regulators claimed a change in Trump’s presidency wouldn’t change their approach to combat financial crimes. Specialists in the banking industry also claim that deregulation might not alter the two-party direction with respect to the fight against financial crime.

On November 13, 2024, United States (US) regulators warned bankers, that government will enforce KYC rules and take action against money laundering activities.

According to media sources, a week after Donald Trump’s victory in the presidential election, banking industry experts gathered in New York, focusing their discussions on the leadership appointments and deregulation he plans for the financial sector. However, they emphasized that combating financial crimes would be a nonpartisan agenda.

FinCEN Warns of AI-Powered Deepfake Scams

The Financial Crimes Enforcement Network (FinCEN), has sent out an alert to financial institutions on growing threats posed by scams using deepfake media created through artificial intelligence(AI).

Media highlighted that regulatory bodies have intensified their bank’s scrutiny, risk management frameworks & operational procedures.

Concurrently, they are imposing disciplinary actions on financial organizations that haven’t implemented adequate measures for detecting and preventing money laundering. For instance, Federal Authorities impose a $3 billion fine on TD Bank because they don’t meet AML requirements.

There were substantial weaknesses in the oversight that placed all of us, supervisory and enforcement colleagues, in a position where we must step in.

Whitney Case

Protect Customers from Financial Fraud

As many American citizens are victims of financial fraud, there has been growing attention on ensuring FIs prevent crime.

Almost one in three consumers or households, or about 77 million Americans have been victims of financial fraud during the past 5 years.

These frauds often cause grave financial consequences; most victims lose over $500 and many suffer losses of thousands of dollars, stated media sources.

Banks and other financial institutions are the first line of defense and advocate for fraud victims. If the customer reports the loss to his financial institution, their chances of retrieving the money lost in fraud are infinitely better.

50% of victims of scams will contemplate changing banks or other financial institutions after a bitter experience, and 30% will follow through on their decision.