Kroll, an independent provider of global financial and risk advisory solutions, released findings from its Kroll 2025 Financial Crime Report today (7 April 2025).
The survey revealed that 70% of senior executives in Hong Kong expect financial crime risks to increase over the coming year.
While slightly below the Asia Pacific (APAC) average of 77% and the global average of 71%, the sentiment in Hong Kong reflects growing concern, especially around cyber threats and the fast-evolving use of AI by criminal actors.
According to the report, 66% of respondents from Hong Kong identified cybersecurity risks and criminal exploitation of AI as top factors driving expected exposure to financial crime in 2025. Other contributing risks include a rise in predicate crimes, geopolitical tensions, and political instability.
In response to these concerns, many Hong Kong-based organisations are stepping up. 56% plan to conduct more frequent business risk assessments, while 44% are investing in AI solutions, and 42% intend to increase their cybersecurity budgets.
However, attitudes toward AI remain mixed. Although 48% believe AI developments will improve financial crime compliance, 56% see AI itself as a compliance risk. Among organisations already using AI tools, only 19% report a “very positive” impact.
Geopolitical risk also emerged as a growing concern. 40% of respondents link the rise in financial crime to global political and economic tensions. Cybercrime and economic and financial sanctions are seen as the most pressing geopolitical challenges.
Despite this, just 12% of Hong Kong respondents say their organisations are “very prepared” to respond to geopolitical events.
Supply chain vulnerabilities, which often overlap with geopolitical risk, are another area of concern. The most cited supply chain threats include cybersecurity risks (45%), geopolitical instability (35%), and political risk (33%).
Only 28% of respondents say their financial crime compliance programs are “very prepared” to manage these threats.
The report also shows limited readiness for cryptocurrency-related risks. While 62% of Hong Kong respondents consider crypto-related financial crime a moderate to significant concern, just 28% say their current compliance programs address these risks.
Violet Ho, Senior Managing Director and Head of Greater China, Investigations, Diligence and Compliance at Kroll, said,
“To capture opportunities and adapt to global megatrends, organisations must act swiftly to understand the key drivers of risks and stay informed of the latest developments. This includes leveraging AI to enhance efficiency while maintaining security, unlocking potential of cryptocurrencies and strengthening their ability to effectively manage geopolitical risks in an increasingly complex business environment.”
David Lewis, Managing Director at Kroll, added,
“Our 2025 Financial Crime Report is intended to give compliance and security teams a better measurement of the risks they face today. Firms that can best direct efforts to meet this changing landscape will be the ones that succeed, even as the outlook for financial crime grows more concerning by the year.”
Kroll commissioned an online survey of more than 600 senior decision-makers globally, conducted by Greentarget between September and October 2024.
Respondents of the Kroll 2025 Financial Crime Report came from financial services and other highly regulated sectors across markets, including Australia, Hong Kong, India, Japan, and Singapore. Survey responses were anonymous, and results were reported in aggregate.
Source of image: Edited from Freepik