Financial Crime

Financial Crimes are criminal activities carried out by individuals or criminal organizations to provide economic benefits through illegal methods. Financial crimes, which have become a critical issue in recent years worldwide, cause significant harm to the economy and society. Income from financial crimes corresponds to a substantial proportion of global GDP. Therefore, regulatory bodies constantly develop new tactics to combat financial crimes. In addition, with the development of technology, criminals develop new tactics. Today’s most common financial crimes are terrorist financing, money laundering, corruption, and fraud.

Measures Against Financial Crimes

There are many national and global organizations to combat financial crimes. For instance, The Financial Crimes Enforcement Network (FinCEN) is a US and Treasury Department’s office that collects and analyzes financial transactions to combat national and international money laundering, terrorist financing, and other financial crimes. These organizations publish regulations that companies have to comply with. Regulators impose penalties on organizations that do not comply with regulations. Financial institutions must comply with compliance regulations such as AML and KYC requirements.

With the development of technology, methods of combating financial crimes are developing. With the developing RegTech sector in recent years, solutions to combat financial crimes have increased. AML solutions, developed with artificial intelligence and machine learning methods, enable the detection and prevention of financial crimes. AML solutions are increasing year by year because manual control methods are dysfunctional and waste a lot of time.