Financial Crimes Definition: A Major Concern in Saint Helena
A staggering 47% of companies have fallen victim to financial crimes, making it essential for businesses to take proactive measures to protect themselves.
Understanding Financial Crimes
Financial crimes refer to any crime committed against the property of others. With the rise of digitization, companies are increasingly becoming targets for cybercriminals. Not only do external attackers pose a threat, but internal employees also play a significant role in committing financial crimes.
Common Types of Financial Crimes
- Fraud
- Bribery
- Terrorist financing
- Market abuse
- Tax evasion
- Identity theft
- Embezzlement
- Counterfeiting
- Electronic crime
- Money laundering
- Personal purchases with company funds
Companies must be aware of these tactics to prevent them from occurring in the first place.
Financial Crime Risk Management (FCRM)
FCRM is a proactive approach that involves monitoring suspicious activity and detecting potential vulnerabilities within the company. The EU has introduced stricter regulations aimed at combating money laundering and terrorist financing, which obliges companies to protect their data to the best of their abilities.
Steps to Prevent Financial Crimes
- Observe compliance guidelines
- Conduct thorough due diligence checks on business partners
- Implement proactive risk monitoring of suppliers
- Adopt a risk-based approach when dealing with politically exposed persons (PEPs)
- Know the beneficial owners of customers, suppliers, and other business partners
Knowing the beneficial owners of customers, suppliers, and other business partners is also crucial in preventing financial crimes such as money laundering, corruption, or bribery.
The Importance of FCRM in Saint Helena
In Saint Helena, where the financial sector is growing rapidly, it is essential for companies to prioritize FCRM and take a proactive approach to protecting themselves against financial crimes. By doing so, they can minimize the risk of falling victim to these crimes and maintain a strong reputation in the market.
Remember, prevention is key in combating financial crimes. Companies must stay vigilant and take proactive measures to protect their data and prevent these crimes from occurring in the first place.