The consultant PwC forecasts that global assets under management will rise by close to a third between 2020 and 2025, breaking through the $145 trillion barrier. This provides a huge and growing opportunity for criminals to hide their money in plain sight and legitimise the proceeds of their wrongdoing.

As a direct result, financial regulators are taking a far greater interest in the asset management sector’s compliance with anti-money laundering (AML) and combating the financing of terrorism (CFT) legislation.

Asset managers that fail to recognise and respond to this mounting risk are putting themselves in danger. It’s not just the prospect of regulatory penalties and the subsequent burden of remediation and increased supervision, but also the reputational damage from conducting business with the wrong type of client. It’s also important to note that the directors and senior managers of asset management businesses who fall foul of regulations may even be personally liable for penalties and prosecution.