Financial Crime

Financial crime refers to illegal acts committed by individuals or organizations that involve the unlawful acquisition, manipulation, or concealment of financial assets for personal or corporate gain. These crimes encompass a broad range of activities that result in financial loss or harm to individuals, businesses, financial institutions, or the economy as a whole. Financial crimes are sophisticated and often involve complex schemes to evade detection and prosecution. Key types of financial crimes include:

  • Money Laundering
  • Terrorism Financing
  • Fraud
  • Tax Evasion
  • Insider Trading
  • Bribery and Corruption
  • Counterfeiting and Forgery
  • Embezzlement
  • Market Manipulation
  • Ponzi and Pyramid Schemes

Financial crimes have far-reaching consequences, including financial losses for victims, damage to financial institutions' reputations, and disruptions to economic stability. As such, detecting, preventing, and prosecuting these crimes are critical components of regulatory and law enforcement efforts worldwide. Comprehensive anti-money laundering (AML) and counter-terrorism financing (CTF) frameworks, robust compliance programs, and international cooperation are essential in combating financial crime effectively.


Other related terms:

Explore other KYC terminology in Avallone's KYC dictionary.