Close to half the organisations surveyed believe that local law enforcement is not adequately resourced to investigate economic crime, leaving the responsibility for fighting economic crime on organisations
More than one in three organisations report being victimised by economic crime
Cybercrime climbs to 2nd most reported economic crime affecting organisations
More than a third of organisations have experienced economic crime in the past 24 months, as reported by over 6,000 respondents to PwC’s Global Economic Crime Survey 2016. This year’s results show that the incidence of economic crime remains stable at 36% with an marginal decrease of 1% compared to the previous report and for the first time since the global financial crisis of 2008-9. Of particular interest from a Luxembourg perspective is the prominence of economic crime in the global financial services industry where 48% reported an incident making this the most exposed industry.
In addition to the global results, this year we are proud to provide soon a specifically Luxembourg perspective due to the strong increase in responses from our local market players. The majority of Luxembourg participants in the survey are from the financial services sector, in particular asset management organisations. 42% of these Luxembourg companies have experienced financial crime in the past 24 months - a result significantly higher than the global average - our report will provide vital information for local companies looking to understand the threats they face.
The 2016 Global Economic Crime Survey demonstrates that cyber-crime, money laundering and asset misappropriation remain significant concerns for all organisations. Instances of cyber-crime continue to increase in frequency around the world and are a key concern for Luxembourg companies, as is cyber-crime and money-laundering. Economic crime continues to forge new paths into business, regulatory compliance adds stress and burden on responsible businesses, and the increasingly complicated threat landscape challenges the balance between resources and growth. Every business needs to be prepared and anticipate such threats since it is less of a question IF, but rather WHEN an organisation will become a target.
Regulatory scrutiny means that for Luxembourg companies money laundering remains a major topical issue. The maturity of the Luxembourg Anti-Money Laundering regulatory framework means that local businesses have a strong awareness and controls for money laundering risks and a significant number of specialist staff. This was confirmed by the survey for Luxembourg and more details will be published soon in the dedicated Luxembourg report. So watch this space...