Region: Sub-Saharan Africa

Executive summary

Our 2019 survey reveals that financial crime remains prevalent.  Nearly three quarters (72%) of organizations across the globe reported that they were aware of financial crime in their global operations during the 12 months preceding the survey.  This percentage rises to 76% across Sub-Saharan Africa, despite the fact that an average of 5% of global turnover is being spent on customer and third-party due diligence checks.

Gaps in formal compliance persist – globally, over half (51%) of external relationships did not have an initial formal due diligence check at the onboarding stage and this situation was echoed by 46% of respondents across Sub-Saharan Africa.  Respondents are, however, aware of the potential of innovation and that technology can help organizations to turn the tide and win the war against financial crime.

Over two thirds (69%) across the region are struggling to harness technological advancements, with a greater percentage in Nigeria (71%) than South Africa (66%) expressing this concern.  A lack of digitization is evident and may be stalling progress – across the region just 56% of the data and legal documentation actually obtained to carry out due diligence is in a digitized format. 

Respondents remain committed to working together to combat financial crime, with 86% across the globe and 85% across Sub-Saharan Africa saying that they consider the benefits outweigh the risks when sharing information and collaborating against financial crime.

Clean, complete and reliable data is the foundation of effective due diligence.  This, combined with invaluable human expertise and the right technology can create a powerful combination to fight back against financial criminals. 

The need for innovation

• 76% across Sub-Saharan Africa, rising to 80% in Nigeria, are aware of financial crime in their global operations 

• An average of 5% of global turnover is spent on customer and third-party due diligence checks

• 43% in South Africa and 48% in Nigeria: the percentage of external relationships that did not have an initial formal due diligence check at the onboarding stage

Drivers & blockers

• 100% in Nigeria and 97% in South Africa Mexico believe that technology can significantly help with financial crime prevention

• 66% in South Africa and 71% in Nigeria struggle to harness technological advancements

• In Nigeria just 55% of collected data and legal documentation used to carry out due diligence is in a digitized format

• 78% in Nigeria and 66% in South Africa are prioritizing automation and digitization for investment

• 81% globally and 83% in Sub-Saharan Africa say data privacy regulations are restricting their ability to collaborate against financial crime.

Unlocking the power of innovatio Report highlights

• 88% across Sub-Saharan Africa believe humans are a necessary asset to source trusted data and train algorithms  

• 90% in Nigeria (the highest in the region) consider that the benefits outweigh the risks when sharing information and collaborating against financial crime

Report highlights

• Globally, 59% of companies adopted new technologies to plug compliance gaps