International Organization of Securities Commissions (IOSCO)

The International Organization of Securities Commissions (IOSCO) is a global cooperative of

securities regulatory agencies that aims to establish and maintain worldwide standards for efficient,
orderly and fair markets.

The stated goals of the IOSCO are to:

 Promote high standards of regulation for the sake of orderly and efficient markets
 Share information with exchanges and assist them with technical and operational issues
 Establish standards toward monitoring global investment transactions across borders and
markets

Understanding the International Organization of Securities Commissions (IOSCO)

There were more than 231 members in the International Organization of Securities Commissions
(IOSCO) as of February 2022.

Membership is divided into three categories. These include:

 Ordinary members, which include the primary futures markets and securities regulators in a
given jurisdiction.
 Associate members, consisting of additional futures and securities regulators in those
jurisdictions that have multiple regulatory bodies.
 Affiliate members, which include self-regulatory organizations, stock exchanges, and stock
market industry associations.

Investor Protection Act

Also known as the Investor Protection Act of 2009, it was introduced as part of regulators' attempt to
prevent some of the problems that caused the financial crisis from reoccurring in the future.

The act established a whistleblower reward for reporting financial fraud, and doubled funding to the
SEC over a five-year period. The act also increased safeguards and rights for whistleblowers, who
can bring claims against employers between 90 and 180 days after discovering a violation.

What Is White-Collar Crime?

White-collar crime is a nonviolent crime often characterized by deceit or concealment to obtain or

avoid losing money or property, or to gain a personal or business advantage.

Entities that investigate white-collar crime include the Securities and Exchange Commission (SEC),
the National Association of Securities Dealers (NASD), the Federal Bureau of Investigation (FBI), and
state authorities.

Some White-collar Crimes:

Corporate Fraud

Corporate fraud refers to illegal activities undertaken by an individual or company that are done in a
dishonest or unethical manner.
  Falsification of Financial Information
The majority of corporate fraud cases involve accounting schemes that are conceived to
deceive investors, auditors, and analysts about the true financial condition of a corporation or
business by manipulating financial data, share price, or other measurements to inflate the
financial performance of the business.

 Self-dealing

It occurs when a fiduciary acts in their own best interest rather than in the best interest of their
clients. Considered a conflict of interest, this illegal activity can lead to litigation, penalties, and
termination of employment for those who commit it.

 Insider trading

It occurs when individuals act upon or divulge to others information that is not yet public and is
likely to affect share price and company valuations once it is known. Insider trading provides an
unfair advantage for individuals to profit and does not matter how the material nonpublic
information was received or if the person is employed by the company.

Money Laundering

Money laundering is accepting cash earned from illicit activities, such as drug trafficking, and making
the cash appear as earnings from legal business activity. Criminals often filter money from crimes such
as human and narcotics trafficking, public corruption, and terrorism in a three-step process:

• Placement is the initial entry of a criminal’s financial proceeds into the financial system. For example,
people can transfer cash as goods (luxury items), precious jewels, or even cheques and convert it into
other currencies. They can then transport these valuables or money abroad, away from their source
of origin, i.e., where they committed the crime, to a country with the ease of investment and deposition.

• Layering separates the criminal’s financial proceeds from their source and creates a deliberately
complex audit trail through a series of financial transactions. People can transfer money and split it
into multiple accounts amongst countries, individuals, or corporations. They use banks with strict
privacy policies for this, and offshore corporations are nominated as bank account holders.

• Integration occurs when the criminal’s financial proceeds are returned to the criminal after
"laundering" from what appear to be legitimate sources. They can then invest the money as properties,
real estate, securities, and other financial instruments, cryptocurrencies, or used for funding legal or
illegal businesses. They can also consume the money leading a rich lifestyle and purchasing
expensive items.