What is Financial Crime Compliance?

Financial crime compliance refers to ensuring that a “subject person” complies with local and EU legislations and regulations. A “subject person” is any legal or natural person carrying out relevant financial business or activity.

Key Aspects of Financial Crime Compliance

Ensures compliance with local and EU legislations and regulations
Applies to all individuals and organizations involved in relevant financial activities

Understanding Financial Crimes

Financial crimes are complex and multifaceted. Here are some key definitions:

Money Laundering

Money laundering is the conversion, transfer, or concealment of property derived from criminal activity to disguise its origin.

Examples of property that can be laundered include:

Currency
Bank accounts
Securities
Bonds
Real estate

Financing of Terrorism

Financing of terrorism involves soliciting, collecting, or providing funds with the intention that they may be used to support terrorist acts or organizations. This can originate from both legal and illegal sources.

Sanctions

International sanctions are diplomatic efforts by countries against states or organizations to protect national security interests or defend against threats to international peace and security.

Types of sanctions include:

Financial
Economic
Diplomatic
Military
Sports
Environmental

Bribery & Corruption

Bribery refers to offering, promising, giving, accepting, or soliciting an advantage for an illegal or unethical action or breach of trust. Corruption involves dishonest or fraudulent behavior by those in positions of power, typically involving bribery.

Types of bribery and corruption include:

Kickbacks
Secret commissions
Facilitation payments
Influence peddling
Electoral bribery
Embezzlement
Extortion

The Importance of Financial Crime Compliance

Financial crime compliance is crucial in preventing and detecting financial crimes, including money laundering, financing of terrorism, sanctions evasion, and bribery & corruption. By understanding these key aspects and definitions, organizations can better navigate the complex landscape of financial crime compliance and protect themselves from potential risks.