What is Financial Crime?
As the world becomes technologically advanced and information circulates at a greater pace, it has become much easier for money to be moved illegally around the globe without being detected.
Financial crime accounts for 3.6% of global GDP – making it one of the largest economic activities in the world!
Financial crime is generally defined as illegal actions committed by anyone or a group of people to generate wealth. Perpetrators commit financial fraud resulting in financial loss for their victims.
Did you know that there are different types of financial crimes?
Fraud
Fraud involves actions that are dishonest with the intention to illegally or unethically gain at the expense of another. It can sometimes be done without the intention to cheat from the beginning.
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Scam
A scam is an illegal plan to generate money by deceiving its victims. It is undertaken with the intention to cheat from the beginning.
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Money Laundering
We’ve all heard of money laundering! An illegal process that “launders” large amounts of money generated from criminal activities such as drug trafficking or terrorist funding, money laundering makes “dirty money” appear clean and legitimate. How deceptive!
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Tax Evasion
We all know that paying your taxes is a national duty. Not paying your taxes on the other hand, is illegal! This is called tax evasion which happens when a person or an organisation illegally takes purposeful steps to avoid paying their tax liability.
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Embezzlement
Embezzlement is a type of stealing that takes place when a person misappropriates assets and funds that have been entrusted to them for a different purpose.
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Forgery
Official documents are a serious business. So, forgery, which involves falsifying documents or signatures with the intent to deceive, is certainly illegal!
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Illegal Investment
Illegal investments involve unlicensed companies or individuals that offer investment opportunities promising an attractive return in anything from securities to commodities. To get a licence, these companies or individuals would need to apply from regulators such as BNM, Securities Commission, and Labuan FSA.
Illegal Remittance
Illegal remittances comprise the transfer of money overseas through companies that are not authorised by BNM. Thus, remittances via these companies are not regulated nor protected.
Cybercrime
Cybercrime is any criminal activity that involves using computers and network devices.
How could we protect ourselves from being a victim? Let’s find out more about financial crime.
Stay tuned for the rest of the exhibition which will outline these financial crimes be it fraud, scam, or mule activities, along with examples and their modus operandi. See you back again soon!