A Needed Shift, Part 4: Embracing a Victim-Centric Approach in AFC

Financial crime is often discussed in terms of losses, penalties, and compliance burdens, but behind every statistic is a person, a family, a community that suffers its devastating effects. Yet, in the drift toward box-ticking and regulatory compliance, we’ve lost sight of the victims. The people impacted by fraud, identity theft, and human trafficking have become invisible in a system focused on processes and profits.

This cannot continue. If we want AFC (Anti-Financial Crime) to truly make an impact, we need a fundamental shift in perspective. We must build AFC programs that are victim-centric—not just for moral reasons but because it makes sense. Prioritizing the protection of individuals and communities can reinvigorate the fight against financial crime, improve outcomes, and demonstrate to the public that institutions, regulators, and law enforcement are aligned in a shared mission to protect society from harm.

Let’s talk about what victim-centricity means, why it’s urgent, and how it can change the game for every stakeholder in AFC.

The Drift: How AFC Lost Sight of Its True Mission

(Original Article Link)

When AFC programs were first developed, their mission was clear: to protect individuals and communities from the harmful effects of financial crime. But as regulations evolved, the focus shifted. Financial institutions began prioritizing compliance over prevention, fearing fines more than crime itself. Today, many AFC programs are designed to protect institutions from penalties rather than people from harm.

This inward focus has created a system that measures success by how well it avoids regulatory scrutiny, not by how many crimes it prevents or how many victims it protects. The result? Institutions exhaust resources on false positives and low-impact compliance tasks, while victims remain unsupported, and criminals continue to thrive.

Imagine a lifeguard who spends all their time filling out reports about the safety of the pool but ignores the people drowning in it. That’s the state of AFC today.

The Fix: A Victim-Centric Approach

To correct this drift, we need to reimagine AFC through the lens of victim protection. This means designing programs, policies, and practices that prioritize the well-being of individuals and communities. Here’s what that could look like:

1. Introducing the Human Crime Officer

The Knoble , a global network focused on protecting vulnerable populations, recently proposed a groundbreaking idea: the Human Crime Officer (HCO). This role would embed victim advocacy, innovation, education, and protection into the core of AFC efforts.

The HCO’s responsibilities could include:

• Advocacy: Ensuring that victims’ voices are heard in policy discussions.
• Innovation: Developing tools and strategies to identify and support vulnerable individuals.
• Education: Training employees, customers, and communities to recognize and prevent exploitation.
• Protection: Collaborating with law enforcement and regulators to dismantle criminal networks.

This role isn’t just a symbolic gesture—it’s a practical solution to bridge the gap between compliance and impact. By focusing on victims, the HCO can inspire purpose, foster innovation, and drive meaningful change.

2. Reorienting AFC Metrics Toward Impact

Today, AFC programs are often judged by the number of suspicious activity reports (SARs) filed or the amount of regulatory boxes ticked. This needs to be supplemented. Success can also be measured by outcomes:

• How many victims were identified and supported?
• How much criminal activity was disrupted?
• How effectively were communities protected?

By shifting metrics to reflect impact rather than process, we can realign AFC efforts with their original mission.

3. Investing in Technology to Identify and Protect Victims

Technology has the potential to revolutionize victim-centric AFC. AI and advanced analytics can identify patterns that indicate vulnerability, such as unusual account activity in areas associated with human trafficking or sudden financial changes in elderly accounts.

For example, AI-driven models could flag potential cases of elder financial abuse by detecting patterns like frequent small withdrawals, sudden account closures, or unusual transactions. These insights could then be escalated to HCOs or specialized teams trained to intervene and provide support.

This approach doesn’t just protect victims—it builds trust. Customers want to know that their financial institutions prioritize their safety. Victim-centric technology sends a powerful message: “We see you, we care, and we’re here to help.”

4. Embedding Victim-Centricity in Organizational Culture

A victim-centric approach isn’t just a policy—it’s a mindset. Financial institutions need to embed this perspective into their culture, from the C-suite to frontline employees.

This could include:

• Training Programs: Teaching employees to recognize the signs of financial exploitation and respond appropriately.
• Customer Outreach: Providing resources and education to help individuals protect themselves from crime.
• Internal Alignment: Ensuring that all departments, from compliance to customer service, understand and support the institution’s victim-centric mission.

When employees feel connected to a purpose beyond compliance, it transforms morale and combats fatigue. People want to make a difference—and victim-centricity gives them a clear, tangible way to do so.

Why Victim-Centricity Makes Sense

Prioritizing victims, being Impact Aware, isn’t just the right thing to do—it’s the smart thing to do. Here’s why:

1. Improved Accuracy and Efficiency

Victim-centric programs focus on outcomes, not outputs. By identifying real risks and vulnerabilities, they reduce false positives and allow AFC teams to allocate resources more effectively.

2. Combatting Fatigue

AFC teams often struggle with burnout, spending countless hours on low-impact tasks. A victim-centric approach reinvigorates purpose, reminding employees why their work matters.

3. Generating ROI

Preventing crime and supporting victims saves money. Fewer incidents mean lower operational costs, reduced reputational damage, and increased customer trust.

4. Strengthening Public Trust

When institutions prioritize victims, they build trust with customers and communities. This trust translates into loyalty, advocacy, and long-term value.

Building the Business Case

The business case for victim-centricity is clear: what we’re doing now isn’t working. Compliance-focused AFC programs have failed to stop crime, protect victims, or inspire trust. It’s time for a new approach—one that aligns purpose with profit, compassion with compliance, and impact with innovation.

Subtle Changes, Big Impacts

This shift doesn’t require a revolution. Here are some simple steps we can take to get started:

• Appoint HCOs: Assign dedicated advocates to lead victim-focused initiatives.
• Redefine Success Metrics: Shift from process-based to outcome-based measures.
• Leverage Technology: Use AI and analytics to identify and protect vulnerable individuals.
• Train Employees: Build awareness and capacity across the organization.

Moving Forward: A Call to Action

This is a pivotal moment for AFC. We can continue down the path of compliance-driven mediocrity, or we can choose a new direction—one that prioritizes people, builds trust, and delivers real impact.

These are my ideas, born of frustration with the status quo but fueled by optimism for what’s possible. I want to hear yours. Together, one by one and collectively, we can make victim-centricity and impact awareness the cornerstone of a smarter, stronger AFC system.

Let’s protect not just the system but the people it serves. What can we achieve together? Let’s find out.

Tomorrow: Day 13 - Coming Together