Is your financial crime strategy keeping pace with smarter, faster, evolving threats?
Matt Beattie, Co-Founder of BeyondFS, joins the podcast to explore how financial crime is changing and what it takes for organisations to stay ahead of it.
Matt shares why traditional approaches won’t work in today’s environment, where threats are powered by advanced technology and regulations are racing to keep up.
In this episode, we explore the growing complexity of financial crime, how AI is being used on both sides of the fight, and why a people-first, risk-led strategy is essential to modern prevention programmes.
| You can watch this video on YouTube or listen to the interview on our podcast channel. |
Financial crime has never stood still, but today’s rate of change is striking.
Fraud continues to dominate headlines and balance sheets, while 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.
This is no longer just about banks either.
Regulations now cover other professional firms like estate agents and accountants who may unintentionally open doors to illicit activity.
It’s not just the criminals who are getting smarter - regulators are too.
Matt explains that there's a shift away from rule-based compliance toward risk-based frameworks.
This means organisations must now 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."
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.
Matt says 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? Combining smart AI with experienced people who can act on insights.
Matt cautions organisations against jumping straight into tech procurement mode 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,” he 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:
"Design big, but then start small,” Matt advises.
“Massive, enterprise-wide programmes often lose momentum."
One common trap Matt sees 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, BeyondFS
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.
Financial services organisations are under pressure to move faster without compromising rigour.
According to Matt, that’s absolutely possible - 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.
One key challenge in this space is linking the deeply technical nature of fraud prevention programmes to real customer impact.
Matt encourages clients to map processes from the user’s perspective.
“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.
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.
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,” Matt adds.
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.”
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, BeyondFS
Financial crime refers to illegal acts involving money, such as fraud, money laundering, cybercrime, and sanctions evasion. It often exploits weaknesses in financial systems.
Factors include increased digitisation, geopolitical instability, and greater availability of tools like AI to exploit system vulnerabilities.
Regulators are shifting to a risk-based approach, expecting firms to assess and manage their unique risks proactively rather than just meet prescriptive rules.
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.
Begin by identifying key business risks and building a framework. Start small with targeted actions that deliver quick wins, then scale from there.
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
Sam Kendall, 23.04.2024