Financial crime

Almost half of companies have been victims of financial crime. What can companies do about it?

What is financial crime?

Financial crime has existed for as long as people have been exchanging money for goods and services. Financial crime specifically means crime committed against the property of others. Since, in the course of advancing digitization, almost all companies conduct their business and services primarily online, they make themselves easy targets for cybercrime. For companies, this means that criminals are developing ever more sophisticated methods to obtain important financial data.

Unfortunately, it is not always third parties who are involved in these crimes. On the contrary, a large number of financial crimes are committed by internal companies . As a result, these people not only know the easiest way to get important data, they also know how to ideally cover their tracks - be it in contact with financial institutions such as banks, in dealing with customers or within the supply chain.

What types of financial crime are there?

Financial crimes can be committed by both external attackers and internal employees. There are individual perpetrators, but also organized criminals. The main types of financial crime include:

Fraud, Bribery and Corruption
Terrorist Financing
market abuse and tax evasion
Identity theft, embezzlement and counterfeiting
Electronic crime
money laundering
Personal purchases with company funds
Stealing money or items from the store

FCRM: Sustainably fight financial crime

Financial Crime Risk Management, also known as Financial Crime Risk Management (FCRM), is the proactive search for and regular monitoring of suspicious activity and financial crimes. In addition, FCRM includes detecting possible vulnerabilities in the company and taking appropriate measures.

The EU anti-money laundering rules

In order to make it easier to uncover suspicious transactions and activities and to close potential loopholes as quickly as possible, the European Commission presented several legislative proposals in July 2021 . Stricter regulations in the fight against money laundering and terrorist financing should therefore help to slow down financial criminals and protect companies.

At the same time, these regulations oblige companies to protect their data to the best of their knowledge and belief. If they don't do this, they face high fines that can run into billions. It is all the more important for companies to develop an effective FCRM strategy.

LexisNexis FCRM solutions

We help you to protect your company from the growing risks in the areas of cyber and financial crime. Find out about our solutions Nexis Diligence™ , BatchNameCheck and Nexis ® Entity Insight and contact us if you have any questions!

Observe compliance guidelines

There are a variety of industry and company-specific risk areas. With fixed compliance guidelines , you minimize the risk of rule violations in your company. It does not matter whether the guidelines are self-imposed or regulated by national and international laws. Make sure that your employees always act in accordance with the rules.

Check business partners with due diligence

Secure yourself with a detailed due diligence check : The procedure helps to carefully analyze a company or a person for economic, legal, tax and financial circumstances.

USE THE DUE DILIGENCE TOOL NOW AND IDENTIFY RISKS!

Proactive risk monitoring of your suppliers

Ensure your supply chains are free from white-collar crime and questionable or illegal practices with proactive risk monitoring. With a comprehensive PESTEL analysis, you can protect yourself against political, economic, socio-cultural, technological, legal and environmental risks, both to protect your company and your personal protection.

USE THE PESTEL ANALYSIS TOOL NOW!

Risk-based approach to dealing with PEPs

There is a higher risk of corruption, money laundering or tax evasion, especially when dealing with politically exposed persons (PEPs). With the help of a risk-based approach, you can use data to determine the individual risk of a PEP and receive helpful solutions on how to prevent financial crime in your company.

Know the beneficial owners

In any case, companies should know the beneficial owners (UBOs) of their customers, suppliers and other business partners and know exactly with whom they maintain business relationships. This is the only way to prevent financial crime such as money laundering, corruption or bribery in your company.