Financial crimes have existed ever since the first individuals exchanged goods or services. However, with our increasingly complex world of commerce and technology, fraud has developed as well. This article will shed some light on the steps you should take to identify and prevent financial crimes.
Check for corruption in the supply chain
Corruption is a financial crime that can occur along any part of the supply chain. The common forms that corruption take include false gifts offered by the supplier, inflated invoice requests or the supplier giving bribes to bypass health inspections.
Here’s what you need to know about cyber financial crimes
Because technology is in a state of constant change, so are the criminals interested in this form of financial crime. Many find flaws within developers’ web applications or systems. Within recent years, for example, the amount of phishing crimes has risen by a staggering 220%. However, the most common cyber-related financial crimes involve stealing sensitive data, such as the password and username, for your online banking account.
Money laundering is a popular financial crime
Money laundering involves placing monetary gains in inconspicuous places to hide from the government how much you really have. Many criminals choose to launder money through creating corporations without employees, or ghost corporations; establishing business partnerships to help disguise money; sending the income to foreign banks; opening multiple accounts; and many other schemes. This is particularly difficult for criminal defense attorneys to get to the bottom of because most money launderers target the entire global supply chain in their schemes. Regulatory agencies, such as the EU Money Laundering Directive and the U.S. Patriot Act, help to somewhat mitigate this risk.
What are a few other financial crimes?
It is rare that financial crimes do not involve other illicit activities. For example, money laundering gets linked to extortion, terrorist funding and human trafficking.
Financial crimes are tricky to detect because of how they get tied to other misdeeds and can affect the entire global supply chain. However, if you have been accused of a financial crime, it is important to know that you have options. A good criminal defense attorney can help you with your specific case.