What is Financial Crime?

Financial Crimes are criminal activities carried out by individuals or criminal organizations in order to provide economic benefits through illegal methods. Financial crimes cause harm to people and organizations. Financial crime has become a very important issue in recent years all over the world. Income from financial crimes corresponds to a very large proportion of global GDP. Authorities are constantly developing new tactics to combat financial crimes. With the development of technology, criminals develop new tactics. The most common financial crimes faced today are terrorist financing and money laundering.

What is Financial Crime?

Financial crimes are crimes in which people benefit financially. In financial offenses, usually, one party provides financial benefit and the other party suffers a financial loss. These are frequently committed for the personal benefit of the criminal, and involving the illegal conversion of ownership of the property that is involved. They can occur in many different forms, and they happen all over the world. Some of the most common crimes facing the financial sector are money laundering, terrorist financing, fraud, tax evasion. These crimes are committed every single day, and governments around the world are frequently prosecuting financial criminals while searching for new ones.

Terrorist Organizations need financial support to achieve their goals. The terrorist organization raises funds through criminal activity, self-financing and legitimate resources.

Money laundering is the process of turning earnings from crime into legal earnings. Cartels and gangs are the most common money launderers. Some sophisticated techniques may include different types of financial institutions such as accountants, shell companies, financial and consulting institutions. These institutions use of assets that make money laundering and increase complexity to finance money laundering in illegal money transfers between countries and terrorism. Authorities impose fines on financial difficulties or institutions. Besides, those who help financial crimes are punished.

Main Types Of Financial Crime

  • Money laundering
  • Terrorist financing
  • Fraud
  • Electronic crime
  • Bribery and corruption
  • Tax evasion
  • Embezzlement
  • Market abuse and insider dealing
  • Information security

Measures Against Financial Crimes

There are many national and global organizations to combat financial crimes. For instanceThe Financial Crimes Enforcement Network (FinCEN)  is like a US and Treasury Department's office that collects and analyzes information about financial transactions to combat national and international money laundering, terrorist financing and other financial crimesThese organizations publish regulations that companies must comply with. Organizations impose penalties on organizations that do not comply with regulations. Financial institutions must comply with compliance regulations such as Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements. With the development of technology, methods of combating financial crimes are developing. Artificial intelligence reduces the compliance costs of organizations. The main method used by the authorities dealing with financial crime is comprehensive monitoring through the use of technology. Anti-money laundering technology has made it easier to catch criminals because it allows financial professionals to quickly collect, organize, and view data about accounts and transactions. Compliance software is now widely used by businesses and financial institutions to track their customers because it is effective and easy to use. Platforms such as the Sanction Scanner examine lists of Political Exposed Persons (PEPs) and other individuals at high risk of financial crimes and compile information about them in detail and organized.

Sanction Scanner helps you protect your businesses against financial crimes with more than a thousand sanctions lists. With Sanction Scanner, your business can comply regulations with low costs. We always keep our lists up to date. We process updated lists every fifteen minutes. Getting compliant is one click away. Contact with us. 

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