By PAUL O’DONOGHUE, Senior Correspondent
ILLICIT financial activity worldwide has surged by almost 20% annually, reaching an estimated $4.4 trillion, according to a new report from Nasdaq Verafin.
The firm’s 2026 Global Financial Crime Report estimates that illicit activity has increased by $1.3 trillion since 2023.
According to Nasdaq Verafin, financial crime grew at a compound annual rate of 19.2% over the past two years.
“This growth in the scope, scale, and evolution of financial crime fundamentally threatens the integrity of the financial system,” the company said.
“[It] powers insidious and destabilizing crimes such as human trafficking and terrorism.”
The study combines proprietary data modelling with a survey of more than 500 financial crime professionals. It also draws on interviews with senior executives.
The report found growth across several criminal typologies.
- Illicit flows linked to drug trafficking reached about $1.1 trillion. That figure represents an increase of 17.1% compared to 2023.
- Human trafficking generated roughly $528.5 billion, up 23.5% versus 2023.
- Terrorist financing reached an estimated $16.2 billion, rising by 18.8%.
Fraud and bank fraud schemes also caused major losses. Globally, these crimes generated about $579.4 billion in losses.
“Powering this dramatic rise in scam losses is the widespread use of AI by criminal networks, who leverage advances in technology to exploit vulnerabilities in the financial system,” the report said.
Survey results suggest the trend is already visible inside financial institutions. Around 90% of financial crime professionals surveyed in the study reported an increase in AI-driven attacks at their organisations during the past two years.
Stephanie Champion, executive vice president and head of Nasdaq Verafin, said: “We are currently in the midst of a full-blown financial crime crisis, powered by criminal networks that are leveraging AI to super-charge scam playbooks and operating with the scale and coordination of multinational corporations.”
We hope you enjoyed reading this article
If you would like unlimited access to AML Intelligence premium articles, newsletter delivered twice a week, access to our Global Bank Fines and Penalties database, free access to Boardroom Series events and much more, select one of our subscription options and become a subscriber!
