Modernising Financial Crime Prevention: What’s Changing & What’s Next

Is your financial crime strategy keeping pace with smarter, faster, evolving threats?

Matt Beattie, Co-Founder of BeyondFS, explores how financial crime is changing and what it takes for organisations to stay ahead of it.

Traditional approaches struggle in an environment where threats are powered by advanced technology and regulators are racing to keep up.

In Modernising Financial Crime Prevention: What's Changing & What's Next, Matt sets out why a people-first, risk-led strategy matters more than another technology purchase, and how AI is being used on both sides of the fight.

Financial crime teams now face growing complexity across fraud, sanctions, cyber risk, and digital identity - with professional firms well beyond banking caught in the same regulatory net.

Created from episode transcript

Regulated firms are under pressure to move from tick-box compliance to programmes that reflect real business risk, customer friction, and the speed at which criminals adopt new tools.

The New Reality Of Financial Crime

Financial crime has never stood still, but today's rate of change is striking.

Fraud continues to dominate headlines and balance sheets, with UK Finance reporting the scale of losses and attempted fraud across the sector.

Global crises like the Ukraine conflict and the COVID-19 pandemic have reshaped threat profiles and widened the playing field.

Sanctions, cyber attacks, and digital vulnerabilities are driving financial institutions to strengthen their defences using smarter tools and broader strategies.

"Essentially, we're looking to keep bad actors out of the system and inhibit their ability to use the financial infrastructure to their advantage," Matt says.

Financial crime risk now extends beyond banks.

Regulations now cover other professional firms like estate agents and accountants who may unintentionally open doors to illicit activity, as the UK Home Office overview of financial crime makes clear.

How Regulation Is Evolving

It's not just the criminals who are getting smarter - regulators are too.

There is a shift away from rule-based compliance toward risk-based frameworks, which means organisations must proactively identify and mitigate their unique financial crime risks rather than simply respond to prescriptive requirements.

That's a big mindset shift for many firms.

"The regulator now expects businesses to understand their risks and show how they're addressing them," Matt says.

"Tick-box compliance isn't enough anymore."

The FCA's anti-money laundering supervision report reflects the same direction: firms are expected to demonstrate how controls match the risks they actually face.

The AI Arms Race: Good Vs. Bad

Artificial intelligence presents both a threat and a solution in fraud prevention.

Criminals have access to generative AI tools that can create realistic fake documents, clone voices, or launch smarter phishing attempts.

But organisations are also deploying AI to detect anomalies in user behaviour, reduce false positives, and scale penetration across vast data sets.

Larger organisations with mature data environments are using machine learning to good effect.

"It's a powerful tool to spot unusual patterns across huge volumes of data that humans simply can't manage alone," he explains.

The real opportunity is combining smart AI with experienced people who can act on insights.

Why Your Framework Matters More Than Your Tech Stack

Jumping straight into technology procurement is a common mistake when tackling fraud.

Instead, firms should take a risk-led, business-first approach.

"It always starts with clarifying what risks you actually face as a business," Matt says.

From there, organisations can build a framework that anchors their prevention strategy and guides decision-making.

Matt breaks the approach into two key phases:

• Optimise: Start small, deliver quick wins, and build credibility internally.
• Build Better: Create a scalable, forward-looking control environment over time.

"Design big, but then start small," Matt advises.

"Massive, enterprise-wide programmes often lose momentum."

The Common Pitfalls Enterprises Should Watch Out For

One common trap is copying what others do instead of focusing on what the individual business needs.

"Too many companies chase a checklist of 25 things they've seen on the market," he explains, "but miss the real risks unique to their business."

Another mistake is outsourcing the strategy to tech providers or consultants without holding onto ownership internally.

"Vendors don't know your business like you do - and they're incentivised to offer the solution they already have, not necessarily the one you need."

Matt Beattie, Co-Founder, BeyondFS

The People-First Imperative In Modern Programmes

Financial crime prevention is not just a compliance or IT project.

It requires cross-functional input from operations, technology, legal, customer service, and executive teams.

"We've seen well-structured controls fail because they weren't understood or adopted by people on the ground," Matt says.

Training, awareness, and communication at every level make all the difference.

And these must be built into the organisation's rhythm - not tacked on after rollout.

"When firms tighten financial crime controls, clients still need to understand why an extra check appears when they receive sensitive documents or payment instructions. Clear, traceable communication supports adoption and gives compliance teams evidence they can stand behind later."

Paul Holland, Founder and CEO, Beyond Encryption (Mailock)

Speeding Up Without Losing Control

Financial services organisations are under pressure to move faster without compromising rigour.

That pace is achievable with alignment and focus up front.

By getting multidisciplinary teams together early and agreeing a shared objective, inertia can melt away.

He also recommends literally getting people in the same room.

"When tech leads explain upcoming releases and compliance teams challenge or expand on those, the programme gets better instantly," Matt says.

Connecting Controls To Customer Outcomes

One key challenge in this space is linking the deeply technical nature of fraud prevention programmes to real customer impact.

Mapping processes from the user's perspective is a practical starting point.

"What friction are you introducing? Is it justified? Have you explained why it's necessary?"

He adds that many customers welcome a degree of friction if it delivers a sense of security.

"Being asked a few more questions can actually build trust when done in context," Matt says.

Practical Use Of Emerging Technologies

New tools like digital identities and decentralised authentication platforms are coming online quickly.

Countries like Denmark lead the way. The EU will mandate digital IDs by 2027.

But the ultimate success of these tools depends on trusted authorities that can validate and issue credentials.

The UK government's work on digital identity and authentication shows how policy, trust frameworks, and practical rollout still need to align.

In parallel, the use of large-scale data platforms is helping firms bring together multiple views of customer and counterpart risk.

"That richer picture allows for smarter, more tailored decisions," he says.

Governance In A More Automated World

With more AI and automated tools in the mix, strong governance is essential.

The UK's regulators are supporting innovation through sandboxes and pilot environments, but they expect firms to deploy safely and ethically.

"There's always a risk that automation can go awry," Matt says. "Robust oversight is non-negotiable."

A Final Word Of Advice

If you're feeling overwhelmed by the rate of change in the financial crime space, Matt's advice is simple.

"Start with one really pressing business challenge.

Build a strategic framework around that, and progress will follow."

Matt Beattie, Co-Founder, BeyondFS

FAQs

What Is Financial Crime?

Financial crime refers to illegal acts involving money, such as fraud, money laundering, cybercrime, and sanctions evasion. It often exploits weaknesses in financial systems.

Why Is Financial Crime Rising?

Factors include increased digitisation, geopolitical instability, and greater availability of tools like AI to exploit system vulnerabilities.

How Are Regulators Responding to Evolving Threats?

Regulators are shifting to a risk-based approach, expecting firms to assess and manage their unique risks proactively rather than just meet prescriptive rules.

What Role Does AI Play in Threat Detection?

AI, especially machine learning, helps detect unusual patterns in large datasets that humans can't analyse at scale, improving fraud detection with fewer false positives.

How Can Businesses Get Started with Financial Crime Prevention?

Begin by identifying key business risks and building a framework. Start small with targeted actions that deliver quick wins, then scale from there.

References

Matt Beattie, LinkedIn

BeyondFS, BeyondFS

Fraud: The Facts 2023, UK Finance, 2023

Financial Crime In The UK: An Overview, UK Home Office, 2023

Anti-Money Laundering In The UK: Supervision Report 2022–2023, Financial Conduct Authority, 2023

The Future Of Financial Crime Detection, RUSI, 2024

Digital Identity And Authentication In The UK, Department for Science, Innovation and Technology, 2023

Modernising Financial Crime Prevention: What’s Changing & What’s Next, Matt Beattie, BeyondFS (#19), Apple Podcasts, 2025

Reviewed by

Sam Kendall, 01.06.26

This content is for general information only and is not legal advice.