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Financial Crime

Hong Kong FinTech
The global financial services sector is accelerating its transformation in response to changing values and shifting consumer preferences… A new breed of financial technology companies, known as FinTech, has emerged. FinTech has taken advantage of these changing preferences and advances in technology to innovate and to try and disintermediate incumbent providers by developing alternative platforms for financial activities. FinTech-driven disruption in financial services has been brewing for a while and it looks like 2017 will be the year the disruption becomes tangible… Hong Kong, with its position as a global financial centre and with its own rapidly growing millennial workforce, is starting to take the fight for its FinTech future seriously. PwC’s 2nd Global FinTech Survey shows that the vast majority of financial institutions in Hong Kong have decided on their FinTech strategy and kick-started a number of initiatives. While the degree of interest in FinTech is unmistakable, Hong Kong is approaching it in its own way…
The worlds of financial crime and cybercrime are colliding, converging into one. The biggest threat to businesses globally is the new cyber-enabled financial crime. Yet businesses and even financial institutions tasked with protecting our money continue to fight this combined threat with multiple separate defense systems and multiple separate defense teams… That is the environment that currently threatens financial institutions in their war against financial crimes, fraud and cyberattack. Financial crime and cybercrime increasingly merge. Yet counter-financial crime teams and cybersecurity teams largely remain unconnected. How have we gotten here? And what can be done to meet this new challenge?
(This is a guest post by Mojca Ivezic) How would you picture those who work to prevent weapons of mass destruction (WMD) from falling into the wrong hands? Would you picture them heavily armed and with a military bearing? Then you might be surprised. Although such individuals sometimes fight the spread...
(This is a guest post by Mojca Ivezic) Terrorist funding detection has been practiced the same way as money laundering detection ever since Counter Terrorism Funding (CTF) initiatives were added to Anti–Money Laundering (AML) efforts after 9/11. Although the two have similarities on the surface, a deeper look reveals more...
(This is a guest post by Mojca Ivezic) In what ways has financial crime hurt you? Most people would respond with a yawn. We might think it is limited to a few fraudulent schemes that deprive a small number of people of a few hundred or a few thousand dollars. While...
(This is a guest post by Mojca Ivezic) Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) efforts include a hidden world that few people outside the banking industry know. It’s the world of Know Your Customer (KYC) and Customer Due Diligence (CDD) compliance, and most who know about it consider it...
Money laundering is a crime that many people consider irrelevant to them. If a problem at all, they consider it a problem only for banks. That is far from true. Money laundering has massive effects not only on financial institutions, but also on governments, industries, economies and all individuals. What...
(Updated 2016)Anti–Money Laundering (AML) and Counter Terrorism Funding (CTF) are not the most popular subjects in banking circles. Bankers often find Know Your Customer (KYC) and Customer Due Diligence (CDD) regulations confining and cumbersome. Those regulations are elaborate and strenuous, to the point where even some KYC/CDD team members...
One key to fighting money laundering is understanding its process and the vulnerabilities in each stage of it. In the first stage, the Placement stage, money launderers deposit their criminal revenues in financial institutions. In that stage, detection teams proficient in Know Your Customer (KYC)/Customer Due Diligence (CDD) practices for...
One key to fighting money laundering is understanding its process and the vulnerabilities in each stage of it. The first stage is Placement. Placement entails depositing illicit funds into financial institutions. Several vulnerabilities lie in this stage. So, we look at it to see what questions money launderers must answer...
Anti–Money Laundering (AML) and Counter Terrorist Funding (CTF) efforts involve the little-known world of Know Your Customer (KYC) and Customer Due Diligence (CDD) regulations. These involve an intensive review of account applications, resolute investigation to verify new customers’ information and ongoing monitoring of established customers’ transactions. Working on KYC/CDD teams...
“Financial Crimes” is a term used to describe a variety of criminal acts including money laundering; terrorism financing; bribery; corruption; sanctions violations; proliferation financing; cyber financial crime; various types of fraud (securities fraud, insider trading, market manipulation, bank fraud, insurance fraud, payments fraud, health care fraud, medical fraud, credit...