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Financial Crime

by | May 28, 2024

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Financial crime refers to any non-violent crime that results in a financial loss or illegal financial gain. It encompasses a broad range of illegal activities that involve the misuse of financial systems for personal or corporate gain.

Key Points:

  1. Types of Financial Crimes:

    • Money Laundering: The process of disguising the origins of illegally obtained money to make it appear legitimate.
    • Fraud: Deceptive practices to secure unfair or unlawful financial gain, including investment fraud, credit card fraud, and insurance fraud.
    • Terrorist Financing: Providing funds for terrorist activities, often using legitimate businesses and financial systems to disguise the source and destination of funds.
    • Bribery and Corruption: Offering, giving, receiving, or soliciting something of value to influence official actions or decisions.
    • Insider Trading: Trading a public company’s stock or other securities based on material, non-public information.
    • Embezzlement: Misappropriation of funds placed in one’s trust or belonging to one’s employer.
    • Tax Evasion: Illegal practices to escape paying taxes owed to the government.

  2. Impact:

    • Economic Damage: Financial crimes can cause significant economic harm, affecting businesses, individuals, and entire economies.
    • Reputational Harm: Organizations involved in or failing to prevent financial crimes can suffer severe reputational damage.
    • Social Impact: Financial crimes can undermine public trust in financial institutions and systems.

  3. Regulatory Framework: Various international and national regulations aim to prevent and combat financial crime, including:

    • Financial Action Task Force (FATF) Recommendations: Provide a global standard for AML and CTF measures.
    • Bank Secrecy Act (BSA): Requires U.S. financial institutions to assist in detecting and preventing money laundering.
    • European Union’s Anti-Money Laundering Directives (AMLD): Set requirements for member states to prevent money laundering and terrorist financing.

  4. Prevention and Detection:

    • Know Your Customer (KYC): Procedures to verify the identity of clients and assess risks.
    • Customer Due Diligence (CDD): Ongoing monitoring and verification of customer activities.
    • Transaction Monitoring: Automated systems to detect suspicious activities and transactions.
    • Reporting Obligations: Requirements to report suspicious activities, such as filing Suspicious Activity Reports (SARs).

  5. Enforcement Agencies: Various agencies are responsible for enforcing laws and regulations related to financial crime, including:

    • Financial Crimes Enforcement Network (FinCEN) in the U.S.
    • Serious Fraud Office (SFO) in the UK.
    • European Anti-Fraud Office (OLAF) in the EU.

  6. Technological Advancements: Advanced technologies such as artificial intelligence, machine learning, and blockchain are increasingly used to detect, prevent, and investigate financial crimes.

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Vaidyanathan Chandrashekhar

Vaidyanathan Chandrashekhar

Advisors

“Chandy,” is a technology and risk expert with executive experience at Boston Consulting Group, Citi, and PwC. With over two decades in financial services, digital transformation, and enterprise risk, he advises iComply on scalable compliance infrastructure for global markets.
Thomas Linder

Thomas Linder

Advisors

Thomas is a global tax and compliance expert with deep specialization in digital assets, blockchain, and tokenization. As a partner at MME Legal | Tax | Compliance, he advises iComply on regulatory strategy, cross-border compliance, and digital finance innovation.
Thomas Hardjono

Thomas Hardjono

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Thomas is a renowned identity and cybersecurity expert, serving as CTO of Connection Science at MIT. With deep expertise in decentralized identity, zero trust, and secure data exchange, he advises iComply on cutting-edge technology and privacy-first compliance architecture.
Rodney Dobson

Rodney Dobson

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Rodney is the former President of ADP Canada and international executive with over two decades of leadership in global HR and enterprise technology. He advises iComply with deep expertise in international service delivery, M&A, and scaling high-growth operations across regulated markets.
Praveen Mandal

Praveen Mandal

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Praveen is a serial entrepreneur and technology innovator, known for leadership roles at Lucent Bell Labs, ChargePoint, and the Stanford Linear Accelerator. He advises iComply on advanced computing, scalable infrastructure, and the intersection of AI, energy, and compliance tech.
Paul Childerhose

Paul Childerhose

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Paul is a Canadian RegTech leader and founder of Maple Peak Group, with extensive experience in financial services compliance, AML, and digital transformation. He advises iComply on regulatory alignment, operational strategy, and scaling compliance programs in complex markets.
John Engle

John Engle

Advisors

John is a seasoned business executive with senior leadership experience at CIBC, UBS, and Accenture. With deep expertise in investment banking, private equity, and digital transformation, he advises iComply on strategic growth, partnerships, and global market expansion.
Jeff Bandman

Jeff Bandman

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Jeff is a former CFTC official and globally recognized expert in financial regulation, fintech, and digital assets. As founder of Bandman Advisors, he brings deep insight into regulatory policy, market infrastructure, and innovation to guide iComply’s global compliance strategy.
Greg Pearlman

Greg Pearlman

Advisors

Greg is a seasoned investment banker with over 35 years of experience, including leadership roles at BMO Capital Markets, Morgan Stanley, and Citigroup. Greg brings deep expertise in financial strategy and growth to support iComply's expansion in the RegTech sector.
Deven Sharma

Deven Sharma

Advisors

Deven is the former President of S&P and a globally respected authority in risk, data, and capital markets. With decades of leadership across financial services and tech, he advises iComply on strategic growth, governance, and the future of trusted data in AML compliance.