Financial Crime World

Global Criminal Networks Unleash Financial Havoc

Financial crime is a growing threat to economic stability, social well-being, and national security. A network of organized criminals has been masterminding large-scale financial crimes using digital technology to evade detection and launder stolen funds across multiple borders.

The Consequences of Financial Crime

  • Financial crime is not only a threat to economic stability but also linked to violent crime and terrorism.
  • The consequences are far-reaching and alarming, with devastating social and economic impacts across the globe.

What is Financial Crime Compliance?

Financial crime compliance involves ensuring that organizations adhere to local and EU regulations, including:

  • Anti-money laundering (AML)
  • Combating financing of terrorism (CFT)
  • Sanctions
  • Anti-bribery and corruption (AB&C)

The Prevention of Money Laundering Act defines money laundering as the conversion or transfer of property knowing it is derived from criminal activity, for the purpose of concealing its origin.

Terrorist Financing: A Growing Concern

Terrorist financing involves soliciting, collecting, or providing funds to support terrorist acts or organizations. This can come from both legal and illegal sources, posing a significant threat to global security.

  • The International Convention for the Suppression of the Financing of Terrorism defines terrorism as any act intended to cause death or serious bodily harm to civilians or non-combatants, in addition to damage to property, infrastructure, or environmental resources.

Sanctions: A Tool Against Threats

International sanctions are political and economic decisions aimed at:

  • Protecting national security interests
  • Defending against threats to international peace and security
  • Upholding international law

Sanctions can take various forms, including:

  • Financial measures
  • Diplomatic measures
  • Military measures
  • Sports measures
  • Environmental measures

In Malta, the National Interest (Enabling Powers) Act governs sanctions, which are monitored by the Sanctions Monitoring Board. All EU, UN Security Council, and Sanctions Monitoring Board sanctions are directly applicable under Maltese law.

Bribery and Corruption: A Threat to Integrity

Bribery refers to the offering or accepting of an advantage for an illegal or unethical action. Corruption involves dishonest behavior by those in positions of power, often involving bribery.

  • Various forms of corruption include:
    • Kickbacks
    • Secret commissions
    • Facilitation payments
    • Influence peddling
    • Electoral bribery
    • Embezzlement
    • Extortion

Conclusion

The consequences of financial crime are severe and far-reaching. It is essential that financial institutions, governments, and individuals work together to prevent these crimes and protect the global economy from harm.