About 96% of senior executives in India’s financial and professional services sectors anticipate a rise in financial crime risks in 2025, significantly higher than the global average of 71%, reveals Kroll’s 2025 Financial Crime Report. Cybersecurity threats and AI-driven attacks are the top concerns, with 76% of Indian respondents and 68% globally identifying them as primary risk factors.
Although most Indian executives expect heightened financial crime risks, only 36% consider their organisation’s compliance program “very effective.”
Lack of technology and investment remains a key weakness, with only 36% strongly agreeing that their compliance framework is adequately resourced. Weak governance is another concern, as just 40% express strong confidence in their organisation’s infrastructure to oversee financial crime risks effectively.
Cybersecurity and AI
Cybersecurity and AI remain the leading catalysts for increased risk exposure in 2025. Nearly 76% of Indian respondents view cybersecurity threats as a major concern, while 72% highlight the growing use of AI by criminals as a significant threat.
Other contributing factors, such as increased predicate crimes, financial pressure on individuals, and the impact of remote working, rank much lower in comparison.
Despite growing interest in adopting AI and machine learning to enhance compliance frameworks, only 32% of Indian respondents exploring these technologies report a “very positive impact.” While 68% believe AI developments could strengthen compliance programs, 52% acknowledge that AI itself poses a significant risk to compliance.
Cryptocurrency risks
Financial crime threats from cryptocurrencies are becoming a growing concern, with 56% of respondents identifying them as a moderate to significant risk in 2025. However, only 28% of organisations currently have provisions in place to address these risks, while another 28% plan to do so in the future.
Geopolitical uncertainty and evolving sanctions pose additional compliance challenges. Only 40% of Indian respondents feel their compliance programs are “very prepared” to handle geopolitical risks over the next 12 months. While almost half of respondents express high confidence in their sanction-screening capabilities, fewer than half feel confident in assessing supply chain threats.
Globally, cybersecurity continues to dominate risk exposure, with 68% of respondents identifying it as the primary concern. Nearly half of organisations plan to invest in AI solutions to enhance financial crime detection, but confidence in AI’s effectiveness has declined, with only 20% now reporting a “very positive” impact, down from 37% in 2023.
Regulatory challenges
Financial services firms worldwide expect increased enforcement action and evolving compliance challenges in 2025. More than 55% of respondents foresee heightened regulatory enforcement, while 59% anticipate changing corporate transparency requirements. However, nearly half cite keeping up with regulatory changes as the biggest challenge in sanctions compliance.
With global geopolitical instability on the rise, only 33% of respondents globally feel “very prepared” to address these risks in 2025. Among those less confident in assessing supply chain threats, 56% cite cybercrime as their primary concern, followed by political instability and broader geopolitical risks.
