“What aspects of financial crime are you most concerned about and how do you think we should educate future business leaders in regard to financial crime” Financial Crime: Issues for management

Financial crime

Financial crime consists of offenses such as money laundering and counterfeiting , payment card swindling , terrorist financing , insider dealing , intellectual property offense , and the like . The a committed financial crime is very difficult to estimate due to many factors and institutions possibly involved or adversely affected (BBC 2006

The current advances in technology even increased the possibility of having illegal workers engaging in financial crime to do their jobs With the current electronic and computer devices , they can gain access to confidential information such as passwords needed for credit card

br transactions and others . With the sensitive information in the hands of the criminals , financial crime can be committed and even spread together with the dissemination of the confidential information (Interpol , 2007

Types of financial crime

Money laundering

Money laundering is characterized by the generation of income from illegal activities , which are in turn reintegrated into a known legal monetary system for it to appear legitimate . This type might also involve counterfeiting of currencies . This type of financial crime is becoming more difficult to contain , due to globalization and the technological advances that permit easy transfer of data and resources rapid communication , intensive researches , and other beneficial works One of the simplest examples is the exploitation of the widely used Automated Teller Machines or ATMs which allow individuals involved in money laundering to transfer and acquire funds from different locations (Stessens , 2000

Terrorist funding

The whole society can be disturbed by a single financial crime not only by destabilizing the economy , but by posing threats to security as well This is especially the case of terrorist funding since such crimes are exploited by criminals and terrorists in financing their illegal engagements (Interpol , 2007

The amount of money that is needed to do a terrorist act considerably low , the fund needed for member recruitment , training , and supporting operations is notably high . At the present , terrorist find it hard to raise huge amounts of money to sustain their activities , especially that financial crime is now being given much attention by law and protection bodies . Because of the great need , the terrorists are finding alternative ways to raise significant amounts of capital for their illegal operations . With this , they usually resort into cooperating with other criminals such as drug pushers , robbers , smugglers , and others , in to have income for the organization 's funds (Richards 1999

Terrorists are also still being financed by charities in countries with poor counter-terrorist measures . Also , in cases wherein a terrorist group generates its own capital by self-employment while revolving funds inside their organization , it is harder for counter-terrorist approaches to effectively trace the criminals and eventually prevent the organization from continuing their work . This is mainly because the terrorist group would not have any record of transaction in banks since they have their funds in their own hands (Keh , 1996

Intellectual property crime

One type of financial crime , which greatly concerns businesses and industries , is intellectual property crime . The individuals engaged with this acquire confidential information about...