Without doubt, Financial Crime – represented by Money Laundering, Terrorist Financing and Fraud – is a hot topic in 2012. It is high on many agendas, principally those of Governments, Central Banks and the whole of the international banking industry covering Retail Banking, Corporate Banking, Private Banking and Investment Banking.
Until recently, Financial Crime was dismissed as a "victimless crime" on the basis that it doesn't really matter if a few banks lose money through Money Laundering or Fraud. But the dreadful impact of the September 11th 2001 and other attacks throughout the world since then, coupled with the recent international economic downturn has raised its profile to unprecedented levels.
Fraud, as a key part of Financial Crime, is an ever-present risk and one that is notoriously hard to control. It was a major factor in the run up to the credit crisis, when the asset bubbles that started to burst in 2007/8 were created. And still, 5 years later, hardly a day passes without a new headline from somewhere in the world of criminal activity related to fraud.
Most worrying, all indications suggest that locally, nationally and internationally, fraud will continue to increase.