“Today, individuals of all ages and backgrounds can be criminals’ targets from the privacy of their handheld devices. The G7 is uniquely positioned to set the global agenda, and to allocate resources to tackle illicit flows and dismantle organised crime networks”
ing law enforcement capabilities, and for enhancing international and judi- cial cooperation. They have engaged in risk reduction, endorsed the FATF’s work and committed to implementing anti-money laundering, counter- terrorism and proliferation financing standards. G7 interior ministers have also emphasised the use of technologi- cal tools to disrupt criminal networks. Technological advances have expanded the threat surface of attack for organised crime networks and threat actors. Organised crime inter- sects with cybercrime, fraud and human trafficking alongside other forms of trafficking. Cybercrime costs the world an estimated $10.5 trillion annually, likely growing to $15.63 tril- lion by 2029. Global losses related to fraud cost $442 billion in 2025; and fraud has devastating psychological effects as attacks, such as romance scams, which become more immer- sive, personalised and protracted. Advances in generative and agentic AI make it cheaper, faster and more attractive to target economically dis- advantaged people. Innovations in digital finance, such as stablecoins, open banking and agentic payments, make it easier for criminals to finance and profit from illicit flows linked to the trafficking of humans, drugs (fen- tanyl and Captagon – worth up to $57 billion), arms, wildlife, flora and waste around the world. The United Nations has estimated that 136 million persons will be state- less or displaced in 2026. Vulnerable people, including displaced people, are exploited as forced labour or sex trafficked by sophisticated criminal organisations. Unlike drugs, humans can be exploited repeatedly for profit. Smuggling of oil, gold and critical minerals will likely rise as demand outstrips supply, due to fuel shortages, increased defence spending and the transition to clean energy. Proceeds from crime feed conflicts, hybrid threats and atrocities such as the gen- ocide in Sudan.
moving through the exploitation of traditional banking products, trade- based financing, virtual assets such as stablecoin, mobile banking and instant payments, as well as through property purchases and smuggled cash, gold, precious gems and metals. There is much the G7 can do to future-proof the fight against organ- ised crime and illicit flows. At Évian leaders should commit to: • Support the development of financial crime detection tech solutions that are affordable, accessible and deployable across value and payment transfer
channels and low- capacity markets;
•
Improve spontaneous cross- sector and cross-border infor- mation sharing beyond the traditional banking sector, including with international financial centres, through privacy-enhancing technologies and leverage existing initiatives to define smart data standards and to build shared data and intelligence infrastructure; Work with partners to assess the rise of agentic payments and understand funds and value flows, illicit finance risks and how controls such as know-your- agent protocols or interoperable digital identity and digital address verification support safe commerce and trust; Identify use cases and proof points to illustrate how different technologies can interact (block- chain, zero knowledge proofs and agentic AI) to fight illicit flows and how to use quantum to fight illicit flows; Strengthen digital financial literacy for vulnerable commu- nities and redress for victims of fraud and financial crime, including supporting the faster release and rehabilitation of victims trafficked into scam compounds; and Explore establishing a G7 panel on economic resilience with the private sector that explores vulnerabilities generated by organised crime and illicit flows to increase the ability of coun- tries to safeguard economic security.
•
•
// DENISSE RUDICH Denisse Rudich is the director of the London office of the G20 and G7 Research Groups. A global expert in financial crime prevention helping lead- ers in finance, government and emerging technology comply with financial crime require- ments, she is the CEO of Rudich Advisory and co-founder of Pro- ductopedia, an AI-powered financial crime product risk intelligence platform.
•
•
LEVERAGING TECHNOLOGY TO COUNTER ILLICIT NETWORKS
Although technology is a force mul- tiplier to perpetrate crime, it can also disrupt criminal and corrupt networks, support victims and accel- erate asset recovery. It can track value
57 globalgovernancemedia.org
Made with FlippingBook - professional solution for displaying marketing and sales documents online