1 in 5 HK execs rate financial crime compliance programmes effective

Key challenges include a lack of technology and investment.

Seventy percent of respondents in Hong Kong anticipate an increase in financial crime risks in 2025, yet only 18% consider their organisation’s compliance programme to be “very effective,” according to Kroll’s 2025 Financial Crime Report.

Key challenges include a lack of technology and investment, with only 24% strongly agreeing their compliance programmes are adequately funded, and weak governance, with just 22% confident in their oversight structures.  

Cybersecurity and AI-driven crime, both cited by 66% of respondents, are expected to be major risks next year. 

Other concerns include rising predicate crimes (52%), geopolitical risk (40%), political instability (30%), and financial pressure on individuals (22%). 

Despite AI and machine learning adoption, only 14% of respondents exploring these tools see a “very positive impact” on compliance, whilst 56% believe AI poses a significant compliance risk.  

Cryptocurrencies are another concern, with 62% viewing them as a moderate to significant financial crime threat. 

However, only 28% say their compliance program addresses crypto-related risks, and 20% plan to do so in the future.  

Geopolitical risks also pose a challenge, with just 26% believing their compliance programs are well-prepared for evolving sanctions. 

Less than 30% have high confidence in their sanctions screening capabilities, and fewer than 20% are very confident in assessing supply chain threats. 

The most pressing threats cited include cybersecurity (45%) and political instability (33%), yet only 28% feel “very prepared” to handle these risks.  

Fourteen percent of respondents reported receiving fines or enforcement notices due to financial crime compliance failures in the past year.