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27 May 2021, 12:07


FAQ of everything Financial Crime from Compliance, Risk and Money Laundering Processes.

Still, in 2021, Financial Crime continues to be a pivotal global concern in all government bodies. We see Corporations, Start-ups, and Authorities fighting to seek innovations to prevent and stop Financial Crime, but the avenues and methods for Financial Crime vary and develop in many different forms. At its core, Financial Crime poses threats to the economic stability, growth and compliance of the world. 

If you are part of or work in financial or government sectors, you must understand what Financial is and how it affects all styles of businesses and institutions.

What do we mean by “Financial Crime”?

The term ‘financial crime’ holds a loose definition to its meaning. As Financial crime itself covers as scope of categories under its umbrella term. However, it primarily refers to crimes in which criminal organisations benefit financially relating to money or financial services including any offence involving: 

  1. fraud or dishonesty 
  2. misconduct in, or misuse of information relating to, a financial market 
  3. handling the proceeds of crime 

These 3 offences only scratch the surface of the crimes that are committed every day, and governments worldwide are frequently prosecuting financial criminals while finding new ones. 

What is money laundering:

Financial crime under its umbrella scope also covers “Money Laundering” which involves the processing of criminal process (cash and or assets obtained from criminal activates) to disguise their illegal origins such as:  

  1. Drug Trafficking 
  2.  Terrorist Funding

Money laundering is a serious financial crime that is employed by white collar and street-level criminals alike. Most financial companies have anti-money-laundering (AML) policies in place to detect and prevent this activity. The flow or processing of money laundering as a financial crime act is completed through a three-stage process: 

Three step process of money laundering

Click here to read more on how Money Laundering affects your business.

FAQ Section:

How much money is laundered per year under Financial Crime? 

The estimated amount of money laundered globally from the United Nations (UN) Office of Drugs and Crime states that in one year 2 – 5% of the global GDP, or around $800 billion – $2 trillion in US dollars is laundered. However, to solidify a numerical amount on financial crime is all well and said, but due to its clandestine nature financial crime and money laundering, is difficult to accurately total the amount of money that goes through the laundering cycle. 

It is also much more than a numerical impact on an economic and financial sector, it breaks down and affects the security and safety of transactions. An updated and in-depth software of AML and transaction monitoring is needed to not only prevent this crime from happening but to also protect you and your business.

“In 2020, U.K. experienced a 33% increase in fraud in April and, in the U.S, the FBI’s Internet Crime Complaint Centre (IC3) received almost as many fraud reports by the end of May as it had in all of 2019”.

Steve Culp - Forbes

Financial Crime Compliance today

With the evident large financial impact from Financial Crime, it is an ever-present threat for organisations and government bodies. As innovators try to prevent this, so do the criminals in finding new avenues and streams in committing these crimes. This is due to the non-tangible evidence of bribery, fraud, and cybercrime being continuously developed and becoming more sophisticated. 

To read more about how AML occurs in either the UAE and the 6AMLD check out our other articles here. 

What are the main Financial Crime risks?

The risk profile of your business is influenced by several variables and others that are unique to your business. However, if your firm/business is required to carry out a written risk assessment to identify and assess the risk of money laundering and terrorist financing that your firm may encounter these risk factors include: 

  1. Your customers (their accounts, type of transaction, product, geography, ownership structures, and much more) 
  2. Countries or geographic areas in which you operate. 
  3. Your products or services 
  4. Business transactions 
  5. Your delivery channels. 

Although, failure in preventing or detecting these risks is often not due to the programs or software themselves. Interestingly, it is more due to the failure of culture and a lack of effective change management within an organisation. 

What role does technology play in managing financial crime risk?

With the growth of Fintech and Technological tools, organisations and government bodies are provided with a much more holistic view of their data. With this view, it highlights potential areas of risk allowing companies to be more focused and targeted in their efforts to combat financial crime. 

This in-depth analytical view and prevention can be seen here at DX Compliance Solutions with our AML technology combining both MI and AI to accurately detect and prevent Financial Crime for your business.  


As noted throughout this article there are systems and software available to you and your business in preventing financial crime. However, this style of crime isn’t stagnant in its capabilities and varies into numerous different avenues that can be difficult to track, monitor and prevent.

Our aim here at DX Compliance is to take away this issue of false positives, suspicious activity and crime affecting your business to enable you to reframe your focus on the important areas of your business.

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