Financial Crime

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Financial Crime

What is a financial crime?

Financial crime term refers broadly to any crime, nonviolent resulting in an economic loss. These crimes, therefore, contain an extensive variety of unlawful activities, containing fraud, financial panic, insider trading, etc.

Financial crime includes fraudulent checks and deposits and is one of the biggest challenges facing today’s business and financial institutions. Expert financial criminals have been improving their skills and sophistication, thanks to advances and availability of personal computers, scanner and color copier technology.

It has been estimated that annual losses due to deceitful check deposits and mounted billions of dollars. Losses continue to grow steadily as criminals continue to seek ways of life by committing fraud. For the consumer, the amount of anxiety and inconvenience caused by the need to solve problems with accountants, local traders and potential impact to the credit bureaus, can be considerable. These crimes also affect consumers by increasing the fees they have to pay to banks because banks have to hire specialists’ hazard identification and purchase specialized software protected from future losses.


  1. They are not violent crimes that result in economic losses.
  2. They are complicated because of the rapid advances in technology.
  3. Generally, they are not reported, as institutions choose to resolve incidents internally.
  4. There is a perception that crimes are among the fastest knowledge.
  5. Cause loss of credibility of institutions.
  6. They constitute a threat to the long-term development of the economy from the country.
  7. The impact in developed countries may be easier to contain, for the size of their economies, rafter in developing countries is greater and the ability of government is limited.
  8. The complexity hinders the characterization of criminal conduct.

Criminal law does not protect completely against what can be intuited from the name used by the Penal Code, the functioning of the credit and financial system because this system may be damaged for many reasons without criminal law to intervene for it. As noted by Professor García Cavero, the financial and credit system can be strengthened with the criminal sanction or losing face if there is an absolute impunity, these are not functions that legitimize the criminal law.

Financial crime is a problem that requires corporate directors and senior executives to stay alerted because the real risks facing bribery and fraud continue to rise rapidly. The risks are mainly due to the strengthening of policy measures in growing customer demands for integrity in financial agreements firms, growth in the sophistication of crime, access to new and emerging technologies, social networks and political and economic instability.


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