By
Renata Jaruseviciute
GENERAL OVERVIEW OF FINANCIAL
CRIME IN THE UK
©Renata Jaruseviciute
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TODAY’S AGENDA
Financial Crime definition & types
 Regulatory body
 Legislation
 Questions to be asked yourself & integrity
matters

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WHY YOU NEED TO KNOW THIS?
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

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FINANCIAL CRIME DEFINITION
Financial crime includes any offence involving:
 Money laundering
 Fraud or dishonesty
 Market abuse. (FSA, 2013)
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WHO IS THE REGULATOR?
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)

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EXCEPTIONS
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).

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MONEY LAUNDERING
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)

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MONEY LAUNDERING REGULATIONS (2007)
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)

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FRAUD
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)

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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)
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MARKET ABUSE

Certain requirements exist about the standards
of market conduct, which users of the UK
markets must follow. (FSA, 2013)
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FINANCIAL SERVICES & MARKET ACT (2000) FISMA
Section 118 of the Financial Services &
Markets Act 2000
 Market Abuse Directive (EU) targets primarily
Insider Dealing and Market Manipulation

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WHAT DO WE KNOW NOW
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.

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QUESTIONS TO ASK YOURSELF
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?
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BIBLIOGRAPHY

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]
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