The Essence of Financial Crime

While the liability for dealing with customers who committed financial crime is increasing and AML legislation is becoming more complicated, scammers continuing to launder money and come up with new tricks. That is why companies need tools to stay protected

Financial crime means an illegal acquisition of property or profit. It could take different forms, including sanctions breaches, illicit trade, terrorist financing, bribery or money laundering.

Due to an increase in online money transfers and the popularity of fintech, money laundering and terrorist financing have become especially grave financial crimes. The number of attacks and fraud attempts reaches a new level. Fraudsters hide identities or use cryptocurrency, believing that this can hide the transactional history. Procedures, requirements and technologies are constantly evolving to counter crimes and to protect companies.

The AML requirements of global regulators are increasing. All institutions and companies which are regulated online,  have more and more requirements for identification and verification of their customers.

Cryptocurrency transaction control is being strengthened. The Financial Action Task Force (FATF) recent updates is a good example of that.  Striving to make the market more transparent, new FATF guidelines have lead to a global tightening of cryptocurrency regulation.

Compliance and transparency are becoming increasingly important from a reputational point of view. Even the world leaders and rich countries are trying to infiltrate and enter the zone of maximum compliance recognition. The UAE has become a member of the FATF. Pakistan achieved exclusion from the FATF gray list. Countries understand, that only by developing and implementing their compliance guidelines it would be possible to work with businesses worldwide.

For companies that expect to remain market-friendly for a long time, it is especially important to set up all processes. Strengthening internal procedures and external solutions can help. Explore our KYC/AML platform and Crypto Compliance to make sure that Sumsub is the best solution to fight financial crime.

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