1. By Renata Jaruseviciute 1 ©Renata Jaruseviciute

2.  Financial Crime definition & types  Regulatory body  Legislation  Questions to be asked yourself & integrity matters 2

3.  Avoid becoming a victim of financial crime  Know what behaviour is described as criminal  Become aware of financial industry regulatory bodies & their responsibilities  Understand the importance of financial regulation  Help to tackle financial crime at a workplace & outside 3

4. Financial crime includes any offence involving:  Money laundering  Fraud or dishonesty  Market abuse. (FSA, 2013) 4

5.  Financial Services Authority is an independent non-governmental body funded by firms it regulates (in other words, by financial services industry itself).  As of 2012, FSA was replaced by new institution called Financial Conduct Authority (FCA) to monitor Financial Crimes.  The statutory objective interacts with our three other objectives – protecting consumers; market confidence; and public awareness. (FSA, 2013) 5

6.  The FSA supervises the compliance of FSMA AUTHORISED FIRMS with the Regulations ONLY  Mortgage brokers, general insurers and general insurance brokers are NOT subject to the Regulations (LOOPHOLE). 6

7.  Money laundering means exchanging money or assets that were obtained criminally for money or other assets that are 'clean'.  The clean money or assets don't have an obvious link with any criminal activity. Money laundering also includes money that's used to fund terrorism, however it's obtained. (FSA, 2013) 7

8.  Money Laundering Regulations are designed to protect the UK financial system.  If your business is covered by the regulations you must put in place certain controls to prevent it being used for money laundering by criminals and terrorists. These include appointing a 'nominated officer', checking the identity of customers and keeping all relevant documents.  You must also report any suspicious activity to the Serious Organised Crime Agency (SOCA). (Metropolitan Police, 2012) 8

9.  Fraud is a type of financial crime that has an effect on all parts of the economy.  It commonly involves the perpetrator making personal gains or avoiding losses through the deception of others.  Fraud can take a variety of forms including phishing, boiler rooms, mortgage fraud, carousel fraud, identity theft and advance fee fraud. (FSA, 2013) 9

10.  If you are unfortunate enough to be a victim of fraud, you should report it to Action Fraud or to your local police force.  FSA is not a law enforcement agency and cannot investigate acts of fraud. However, if the fraud concerns an FSA authorised firm then you should tell FSA by contacting our Consumer Helpline. (Fraud Advisory Panel, 2013) 10

11.  Certain requirements exist about the standards of market conduct, which users of the UK markets must follow. (FSA, 2013) 11

12.  Section 118 of the Financial Services & Markets Act 2000  Market Abuse Directive (EU) targets primarily Insider Dealing and Market Manipulation 12

13.  Financial crime has 3 types (first being the money laundering and the other 2...?)  FSA regulates the authorised firms Only  The New Institution supervising such activities is called Financial Conduct Authority (FCA)  Legislation is supporting the principles-based FSA regulatory structure  You must also report any suspicious activity to the Serious Organised Crime Agency (SOCA) or Metropolitan Police. 13

14.  Is it too good to be true?  Am I doing the right thing?  Do I know some information that is of high relevance to financial crime activities?  Can any steps be created to reduce the risks arising from financial crime?  Do all employees/collegues make a legitimate use of personal customer data? Is it necessary to hold such data within your department? Can I limit the access to certain users instead? 14

15.  FSA (2013) Financial Crime. Available at: [http://www.fsa.gov.uk/about/what/financial_crime]  Metropolitan Police (2012) The Little Book of Big Scams. Available at: [http://www.met.police.uk/docs/little_book_scam.pdf  Fraud Advisory Panel (2013) Sounding the alert on fraud. Available at: [https://www.fraudadvisorypanel.org/index.php] 15