A recent survey by PricewaterhouseCoopers (PwC) Pakistan reveals that nearly 90% of bankers in the country consider cybercrime the biggest threat facing the banking sector. The findings, based on input from over 75 respondents including Chief Compliance Officers (CCOs) and business heads, show a growing concern about financial crimes, with fraud (70%) and terrorism financing (60%) also highlighted as significant issues.
As banks in Pakistan operate within an ever-evolving financial crime landscape, the survey stresses the increasing need for vigilance. With criminals swiftly adopting new techniques to exploit vulnerabilities in banking systems, financial institutions must adapt and stay ahead in the fight against financial crimes.
Key Findings from the Survey:
- Cybercrime: 90% of CCOs perceive cybercrime risk as “very high.”
- Fraud: 70% consider fraud a major concern.
- Terrorism Financing: 60% highlight this as a significant threat.
- Other Risks: Tax evasion (56%), money laundering (55%), and sanctions (50%) are also top priorities for banks.
The survey also indicates that the growing digitalization of Pakistan’s banking system requires robust strategies for financial crime risk assessments. Over 60% of respondents identified technology, data management, HR, and cost constraints as top challenges for financial crime compliance.
Recommendations and Investments Needed:
To address these challenges and mitigate financial crime risks, the report suggests significant investments in several key areas over the next year:
- Data Governance: 95% of respondents see the need for investments in data management and cleansing.
- Technology Optimization: 90% advocate for improving technology to handle financial crime risks.
- Training and Emerging Technologies: 75% support specialized training, and 60% emphasize the implementation of emerging technologies.
Despite the growing adoption of digital technologies, PwC’s survey indicates that banks are still facing hurdles in achieving optimal financial crime prevention. As the sector navigates this new era of digital transformation, the focus on culture, talent, and technology optimization becomes more critical than ever in ensuring compliance and mitigating risks.
