Financial Crime

1434 WordsJan 4, 20136 Pages
What is a Financial Crime? There is no internationally accepted definition of financial crime. Rather, the term expresses different concepts depending on the jurisdiction and on the context. In general, financial crime can refer to any non-violent crime that results in a financial gain to the perpetrators and loss to others or the state. It includes a range of illegal activities such as: • corruption (bribery, speed money, kickbacks etc.) • financial fraud (accounting, check, credit card, mortgage, insurance fraud, counterfeit notes, securities or investment fraud, computer fraud etc.) • money laundering • tax evasion • circumvention of exchange restriction • illegal cross border fund transfer or capital flight • abuse of the…show more content…
Combating financial crimes - Current situation Bangladesh Penal Code, Foreign Exchange Regulations Act, 1947 (FERA), Income Tax Ordinance, 1984, Money Laundering Prevention Act, 2002 (MLPA) and Anti-Corruption Commission (ACC) Act, 2004 are laws to prevent such crimes. While there is always room for improvement in the legal framework, the blame cannot be put squarely on that. It's the implementation of the laws that leaves a lot to be said. • We do not have a functioning Financial Intelligence Unit (FIU) that can collect information, the capability to analyze the same, and identify specific cases and trend of money laundering and other financial crimes. The existing FIU under Bangladesh Bank is not recognized by the Egmont Group, the international forum of FIUs. Hence it cannot sign information sharing agreements with any foreign FIU. • Our investigative agencies are not well equipped in knowledge and procedures to investigate financial crimes/corporate corruptions and file cases. • Our prosecutors and the legal system lack understanding of the complexities involved in financial crimes. • Lack of know-how, interagency cooperation and inbuilt corruption within the agencies has resulted in a virtual free reign for the perpetrators. • Overall, our social moral and ethical standards have deteriorated to a level that such criminals are looked at with admiration. Sometimes they are treated like
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