A-P08 · NETWORK · risk-transmissionGRA dossier · service level R0
GRAFinancial Crime and Fraud RiskIn development
Risk transmission

Financial-system transmission

Financial crime exploits connections: between institutions, between sectors and between the digital and financial worlds. Vulnerabilities in one place, such as a data breach, weak onboarding or an unregulated channel, become losses and harms elsewhere. This page shows how real-system and financial vulnerabilities propagate through financial crime, and how they can affect customers, institutions and trust in the system. It describes channels; it does not assess any firm.

Publisher
The Global Risks Alliance
Field
Financial stability, Cyber and digital resilience, Governance and institutions
Status
In development
Service level
R0: information and enquiries

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Layers 2

Activity and exposure

Latest available

NASA GIBS / EOSDIS · ASTER GDEM (METI, NASA) · Natural Earth

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Night-time lights and population, a proxy for economic activity, with the floods and fires that put assets at risk, framed on World.Satellite and model products as NASA publishes them, each with its own date; indicators, not assessments of any place; claim ceiling INTEGRATED.

Data: NASA GIBS · ASTER GDEM · Natural EarthSources and licences

  • We acknowledge the use of imagery provided by services from NASA's Global Imagery Browse Services (GIBS), part of NASA's Earth Science Data and Information System (ESDIS). Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • We acknowledge the use of imagery provided by services from NASA's Global Imagery Browse Services (GIBS), part of NASA's Earth Science Data and Information System (ESDIS). Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • VIIRS Black Marble night-time lights, NASA Goddard Space Flight Center; distributed by the NASA Level-1 and Atmosphere Archive and Distribution System (LAADS DAAC); imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • Center for International Earth Science Information Network (CIESIN), Columbia University. 2018. Gridded Population of the World, Version 4 (GPWv4): Population Density, Revision 11. NASA Socioeconomic Data and Applications Center (SEDAC). Licensed under CC BY 4.0. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). CC BY 4.0
  • VIIRS near-real-time products (flood, land surface temperature, snow cover, corrected reflectance), NASA LANCE; imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • NASA Fire Information for Resource Management System (FIRMS), VIIRS 375 m active fire product, NASA LANCE; vector tiles via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • ASTER GDEM is a product of METI and NASA (ASTER Global Digital Elevation Model V003, NASA LP DAAC); imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • Made with Natural Earth. Free vector and raster map data @ naturalearthdata.com. Public domain
  • Globe: MapLibre GL JS 6.9.1, BSD-3-Clause, © MapLibre contributors.

Layers and dates

  • Night-time lights, daily: VIIRS Black Marble (VNP46A2), NASA LAADS DAAC · 12 Oct 2026
  • Population density, 2020: Population: CIESIN, Columbia University, Gridded Population of the World v4.11 (2018), NASA SEDAC, CC BY 4.0 · static
  • Flood water, 3-day composite: VIIRS Global Flood Product, NASA LANCE · 14 Oct 2026
  • Active fires and thermal anomalies, last day: VIIRS NOAA-20 375 m (FIRMS), NASA LANCE FIRMS · 13 Oct 2026
  • Land surface temperature, day, 8-day composite: VIIRS NOAA-20 Level 3, 8-day, NASA LANCE · 14 Sep 2026

STEM methods
5
Canonical methods this field applies
Topics
8
Subject pages in the field
Counterparts
10
Platforms in shared fields at GCRI, GRF and GRA
Report series
1
Nexus Reports series it contributes to
01In brief

The short answer.

Risk transmission in Financial Crime and Fraud Risk is the path by which physical, transition, technology and systemic shocks reach the sector and travel onward through balance sheets, markets and the real economy. Analysis uses aggregated, sector-level indicators such as fraud losses by payment type and fraud rate on card payments; it assesses no individual firm and is not investment advice.

02Canvas

One field, three institutions.

Canvas · one field, three institutionsDesign, not a record
One field, three institutions: Financial Crime and Fraud Risk and its counterpartsGCRI studies the field as science, GRF governs and convenes it, GRA builds shared financial understanding; the Nexus Universe tests work across them and the competent authorities decide. Design of the arrangement, not a record.

Fig.How GCRI, GRF and GRA share one field while the authorities decide. Design, not a record.

03Console

Field overview, in outline.

The working screen behind this subject: its structure, terms and states. Names are placeholders and values illustrative.

Field overview: the screen's structure, terms and states for Financial crime.Placeholder names and illustrative values; a design, not a record or a live system.
04Channels

How financial crime risk propagates.

Between institutions

Mule networks

Fraud proceeds move through accounts at many institutions, each seeing only one step. Weak controls anywhere become a channel for all.

From digital systems

Breaches and impersonation

Stolen data, compromised devices and impersonation through calls, messages and platforms feed fraud into the financial system.

Across borders

Jurisdictional gaps

Criminals route funds through jurisdictions with weaker controls or slower cooperation, beyond the reach of any single authority.

05Paths

How crime becomes a financial-system risk.

  • Trust: widespread scams reduce use of digital payments.
  • Correspondent banking: de-risking cuts payment access for whole regions.
  • Integrity: laundering through property and trade distorts prices.
  • Conduct and penalties: enforcement actions affect institutions' capital and franchise.
06De-risking

A geographic side effect.

When banks withdraw correspondent relationships from jurisdictions seen as high risk, remittances and trade finance become costlier, often for small and vulnerable economies. Cross-border payment targets at cross-border payments.

07Consequences

From individual losses to systemic trust.

The first consequence is harm to victims: lost savings, debt and distress, often concentrated among vulnerable people. For institutions, losses, reimbursement obligations, enforcement and remediation follow. When controls respond by restricting services to whole groups or regions, legitimate customers can lose access to finance, which can push activity into less transparent channels.

At a system level, widespread fraud can reduce confidence in digital payments and in institutions. Large-scale laundering can distort property and asset markets and sustain serious crime and corruption. Sanctions evasion undermines the policies sanctions are meant to serve. These effects feed back into regulation, cost and access, shaping the system for everyone.

09Analysis

Sector-level, aggregated, with limits.

Analysis draws on network science and machine learning, using published and aggregated data. Every channel map states its assumptions; see methods and uncertainty.

Analysis uses aggregated data at sector level. It does not assess individual firms, identify individuals or constitute legal or compliance advice.

10Key terms

Terms used on this page.

Each term as this page uses it. Where a standard-setting body defines the term, the wording follows that body.

TermDefinition
Transmission channelThe route by which a shock reaches financial institutions' balance sheets.
ContagionTransmission of losses or stress from one institution or market to others.
Second-round effectsFeedback from bank losses to the economy, such as tighter credit deepening a downturn.
Common exposureHoldings of the same or similar assets by several institutions, which makes their losses move together.
11Sources

Where this page's references lead.

The bodies and documents this page is read against. Status and editions change; each link goes to the issuing body.

12Questions

Questions and answers.

Is competitor data shared?
No. Any data from firms is aggregated before use, under the safeguards set out in GRA's written competition policy, which counsel reviews before membership opens.
Does the platform trace criminal funds?
No. GRA is not a law enforcement body, financial intelligence unit or regulator. It does not investigate cases, receive reports of suspicious activity, screen customers or hold customer data.
Why include de-risking as a consequence?
Because blunt controls can exclude legitimate customers and push them towards less transparent channels, which can increase rather than reduce financial crime risk.
Financial Crime and Fraud Risk

Bring your expertise to this field.

The current service level is R0: information and enquiries. An enquiry receives a reference and names the next step; applications, payments, compute allocations and registrations open only when their team, terms and review capacity exist.

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