Financial crime

Pengertian

Kejahatan finansial adalah adalah kejahatan properti yang melibatkan

pengambilan uang atau properti lain milik orang lain, dan menggunakannya untuk
keuntungannya sendiri .

Tipe-tipe kejahatan finansial:

-Penipuan
-Kejahatan elektronik
-Pencucian uang
-Pendanaan terroris
-Penyuapan dan Korupsi
-Penyalahgunaan pasar dan Transaksi dengan orang dalam
-Eksploitasi informasi

Karakteristik Kejahatan Finansial adalah adanya unsur penipuan, ada unsur

penggelapan dana atau pencucian uang, adanya eksploitasi celah di pasar yang
dilakukan secara illegal dan tindakan tersebut menguntungkan dirinya sendiri
tetapi merugikan orang lain, adanya unsur korupsi dan pemanfaatan orang dalam
dimana terjadinya penyuapan yang menimbulkan ketidak adilan dan keuntungan
bagi pihak-pihak tertentu saja, dan juga adanya eksploitasi informasi atau
pencurian data yang dapat merugikan pihak-pihak tertentu (Contoh: Pembobolan
Akun Bank).
Financial crime over the last 30 years has increasingly become of concern to
governments throughout the world. This concern arises from a variety of issues because
the impact of financial crime varies in different contexts. It is today widely recognised
that the prevalence of economically motivated crime in many societies is a substantial
threat to the development of economies and their stability.

It is possible to divide financial crime into two essentially different, although closely
related, types of conduct.

First, there are those activities that dishonestly generate wealth for those engaged in the
conduct in question. For example, the exploitation of insider information or the
acquisition of another person’s property by deceit will invariably be done with the
intention of securing a material benefit. Alternatively, a person may engage in deceit to
secure material benefit for another.

Second, there are also financial crimes that do not involve the dishonest taking of a
benefit, but that protect a benefit that has already been obtained or to facilitate the
taking of such benefit. An example of such conduct is where someone attempts to
launder criminal proceeds of another offence in order to place the proceeds beyond the
reach of the law.

If you’re considering developing your career in anti money laundering, find out more
about joining ICA’s global community here. Becoming a member today will give you
access to a wealth of knowledge, tools, resources and practical support to help develop
your career. Being a member of ICA also demonstrates a commitment to the highest
standards of practice and conduct and enhances your professional reputation and
employability.

Who commits Financial Crime ?

There are essentially seven groups of people who commit the various types of financial
crime:

 Organised criminals, including terrorist groups, are increasingly perpetrating large-scale

frauds to fund their operations.
 Corrupt heads of state may use their position and powers to loot the coffers of their
(often impoverished) countries.
  Business leaders or senior executives manipulate or misreport financial data in order to
misrepresent a company’s true financial position.
 Employees from the most senior to the most junior steal company funds and other
assets.
 From outside  the company, fraud can be perpetrated by a customer, supplier, contractor
or by a person with no connection to the organisation.
 Increasingly, the external fraudster is colluding with an employee to achieve bigger and
better results more easily.
 Finally, the successful individual criminal, serial or opportunist fraudsters in possession of
their proceeds are a further group of people who have committed financial crime.

What are the main types of Financial

Crime ?

Financial crime is commonly considered as covering the following offences:

 fraud
 electronic crime
 money laundering
 terrorist financing
 bribery and corruption
 market abuse and insider dealing
 information security

How is financial crime linked to terrorist

financing ?

Terrorist organisations require financial support in order to achieve their aims and a
successful terrorist group, like any criminal organisation, is therefore one that is able to
build and maintain an effective financial infrastructure.

It is generally believed that terrorist organisation raise funds by the following means:
  legitimate sources, such as the abuse of charities or legitimate businesses
 self-financing (i.e. through their members or sympathisers)
 criminal activity
 state sponsors
 activities in failed states and other safe havens
Terrorists often control funds from a variety of sources around the world and employ
increasingly sophisticated techniques to move these funds between jurisdictions. To
manage their finances, they draw on the services of professionals, such as bankers,
accountants and lawyers, and take advantage of a range of financial services products.

How should a firm react to a suspected

fraud ?

A financial institution should take appropriate action where a corporate customer, a

member of its senior management or a senior representative of the customer is the
subject of an investigation by a law enforcement agency or regulatory body.

Financial Institutions must also consider any obligations they might have to report
suspicions of money laundering (including any successful fraud).

Consideration should also be afforded to obtaining appropriate legal advice to reduce

the risk, that:

 customers transfer or move fraudulent funds, or use the bank to illegally

 transfer or dispose of assets, including money or other negotiable instruments
 constructive trust claims are made against the bank, by third parties arising out of a
dispute between a third party and the bank’s customer
 assets under management are not negotiated without proper authority in law, when the
subject of an asset-forfeiture or restraint order issued by a Court

How do you motivate employees to fight

fraud ?
The foundation of any successful fight against fraud is the culture within the institution.
When correctly motivated, employees remain honest and become the most effective
front-line defence against the fraudster.

Employees become motivated when they believe:

 that their institution is honest and ethical in its business dealings, including dealings with
customers, suppliers and employees.
 that their employer treats them with respect, rewards them fairly, imposes discipline
fairly, and, where regrettably redundancy becomes necessary, carries this out fairly.
 that fraud prevention is a common objective throughout the organisation at all levels,
that they have been trained to play their part in the fight, and that their efforts are
acknowledged.

Why is insider dealing relevant to financial

crime professionals ?

An awareness of what constitutes insider dealing activity is imperative for financial crime
and compliance professionals in the detection and prevention of exposure to the activity
as a serious financial crime. Regulatory data shows unusual share price movements – a
potential indicator of market abuse – in around 29% of takeover announcements.

Additionally, it is possible in the case of financial services businesses that are themselves
listed, for directors to commit the offence. To this extent, financial crime and compliance
professionals should ensure that businesses and their employees comply fully with all
relevant disclosure rules.

More commonly, financial services businesses are exposed to insider dealing through
customers who are engaged in the activity. Any money, goods or property derived from
insider dealing activity is capable of predicating money laundering offences in most
common law jurisdictions.
Why is the financial sector vulnerable to
fraud ?

Due to the often complex nature of financial services, detecting and preventing fraud
within the financial sector poses an almost insurmountable challenge. The threats are
both domestic and international. They may come from within the organisation or
outside it. Increasingly, internal and external fraudsters combine to commit significant
fraudulent acts.

The victims may be the financial sector firms themselves or the customers of those firms.
The proceeds of fraud are rarely generated in cash. The funds that are the target of the
fraud are generally already within the financial system but will undoubtedly need to be
moved in order to confuse the audit trail.

https://www.int-comp.org/careers/your-career-in-financial-crime-prevention/what-is-financial-
crime/
An overview of financial
crime and how it can
affect you
Financial crime has been a pivotal issue in the global arena
for several decades now. Authorities are constantly looking
for new ways to track down and prevent financial crime,
and criminals are always developing innovative tactics in
order to stay ahead. If you are involved in the finance or
business sectors, it is critical that you understand what
financial crime is and how it works.
Financial crime is defined as crime that is specifically
committed against property. These crimes are almost always
committed for the personal benefit of the criminal, and they
involve an illegal conversion of ownership of the property that
is involved. Financial crimes 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,
embezzlement, forgery, counterfeiting, and identity theft.
These crimes are committed every single day, and
governments across the globe are constantly prosecuting
financial criminals while searching for new ones.
The two most prevalent types of financial crime faced today
are money laundering and terrorist financing. While the term
“terrorist financing” is fairly straightforward, money
laundering can be a more complicated concept to grasp. In
essence, though, money laundering is simply the act of
disguising profits that were obtained from crime. Cartels and
mafia groups are some of the most prominent money
launderers in popular news media, but money laundering can
also extend beyond organised crime groups and can happen
at many different scales.
Criminals who launder money and provide financing to
terrorists generally 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 need to smuggle cash over borders to
facilitate their plans. It is not uncommon for these criminals
to have corrupt connections in government and business;
these could include financial institution employees,
accountants, government officials, and other service
providers.

The main method by which officials currently combat

financial crime is extensive monitoring through the use of
technology. Anti-money laundering technology has made it
far easier to catch criminals in the act as it allows financial
professionals to quickly gather, organize, and view data
regarding accounts and transactions. Compliance software is
now commonly used by  financial institutions and businesses
to keep an eye on their clients due to its efficiency and ease
of use. Platforms like ComplyAdvantage sift through lists
of Politically Exposed Persons and other individuals who are
at high risk of committing financial crimes, and they compile
information about them in an organized and comprehensive
manner.

https://complyadvantage.com/knowledgebase/financial-crime/