Financial crimes are not victimless crimes, as they are real and illegal acts.
Financial crimes might seem attractive, offering a quick shortcut to financial gain like taking one on a long journey. But just like a shortcut can lead you somewhere dangerous and unfamiliar, financial crimes come with hidden dangers like fines, imprisonment, reputation damage, legal action. A single misstep or unforeseen issue can cause weaknesses, leaving you vulnerable and less protected than before.
-Financial crime is an illegal activity performed to obtain money or financial benefits illegally, and it goes beyond just fraudulent activity (fraud).
-Financial crime poses a major threat to financial institutions
-As financial crime is a major threat, a robust plan is needed for firms to safeguard themselves from the risks and hazards
-Money, power, or even influence could be factors in the motivation behind financial crime.
𝐌𝐨𝐭𝐢𝐯𝐚𝐭𝐢𝐨𝐧𝐬 𝐟𝐨𝐫 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐂𝐫𝐢𝐦𝐞:
-Motivated by greed
-Tempted by an opportunity
-Rationalisation of financial gain
'It is more important to live a dignified life than to achieve success dishonestly.'
𝐓𝐡𝐞 𝐦𝐨𝐬𝐭 𝐜𝐨𝐦𝐦𝐨𝐧 𝐭𝐚𝐜𝐭𝐢𝐜𝐬 𝐭𝐡𝐚𝐭 𝐚𝐫𝐞 𝐮𝐬𝐞𝐝 𝐟𝐨𝐫 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐜𝐫𝐢𝐦𝐞 𝐚𝐫𝐞:
*Fraud
*Cybercrime
*Moneylaundering
*Terrorist financing
*Bribery and corruption
*Market abuse and insider dealing
*Ponzi Schemes
*Embezzlement
Anyone can be involved in financial crimes with little effort. However, there are seven groups of people who are most frequently involved in financial crimes:
🔎 Organised criminals, such as terrorist groups 🏹 , are running complex financial crimes to fund their illegal activities.
🔎 Corrupt public officials who take advantage of their position to use it as a power of benefit for the personal gain or coffers of their (often impoverished) countries.
🔎 C-suite executives or business leaders who falsify financial statements to fraudulently report a company's financial performance commit accounting fraud.
🔎 Employees, in any job position, who use it to gain financial assets or funds for the company.
🔎 A customer, supplier, contractor, or a person who commits fraud outside the company by individuals or entities who have no direct connection to the organisation.
🔎 External fraudster who works with an employee to find out the vulnerability of the company to achieve long-term financial success 📍
🔎 Successful individuals commit financial crimes when they capitalise on a specific opportunity they see as profitable.