Overview of financial crime and its impact on people

Financial crime has been a central issue on the international scene for several decades. Authorities are constantly looking for new ways to track down and prevent financial crime, and criminals are constantly developing innovative tactics in order to stay ahead. If you work in finance or business, it is essential that you understand what financial crime is and how it works.

Financial crime is defined as a crime that is specifically committed against property. These crimes are almost always committed for the personal benefit of the criminal and involve an illegal conversion of ownership of the property involved. Financial crimes can take many different forms, and they happen all over the world. Money laundering , terrorist financing , fraud, tax evasion, embarrassment, forgery, counterfeiting, and identity theft are some of the most common crimes facing the financial sector. These crimes are committed every day, and governments around the world are constantly pursuing financial criminals in search of new ones.

The two most prevalent types of financial crime today are money laundering and terrorist financing . While the term « terrorist financing » is quite simple, money laundering can be a more complex concept to grasp. In essence, however, money laundering is nothing more than disguising the proceeds of crime. Cartels and mafia groups are among the most prominent money launderers in popular media, but money laundering can also extend beyond organized crime groups and occur on a wide variety of scales.

Criminals who launder money and finance terrorists usually use very sophisticated techniques, which means they are difficult to detect and catch. Both of these crimes are often international, as money launderers and terrorist financiers must smuggle money across borders to facilitate their plans. It is not uncommon for these criminals to have corrupt relationships with government and corporations; these may be employees of financial institutions, accountants, government officials and other service providers.

The primary method by which officials currently combat financial crime is extensive surveillance through the use of technology. Anti-money laundering technology has made it much easier to catch criminals in the law, as it allows financial professionals to quickly collect, organize and view account and transaction data. Compliance software is now commonly used by financial institutions and businesses to keep tabs on their customers due to its efficiency and ease of use. Platforms like ComplyAdvantage screen politically exposed persons and others who are at high risk of committing financial crimes, and they compile information about them in an organized and comprehensive manner.

Our anti-money laundering solutions will help you prevent financial crime and comply with the latest regulations.