What are financial crimes?

There is a range of different crimes involving money that can be committed in Texas. Each crime can fall under different areas of law. One example is financial crimes. A financial crime, according to the International Compliance Association, involves money and typically someone misusing funds or tricking others into misusing funds with the expressed purpose of making themselves richer.

This type of crime could occur due to exploitation, mismanagement, theft, embezzeling or money laundering. They could be committed by organized crime groups, employees, business leaders, customers or scammers. A fairly new concern is the use of financial crimes by terrorist groups, which helps to further their agendas and leads to increases in terrorist activities.

These crimes occur most often within a business. This makes them white collar crimes. The inclusion of a business elevates them from simple theft or burglary and puts them in the white-collar category.

Fighting these crimes is often difficult because they are usually well hidden. They are often done so that they are hard to trace and detect. It could take years for a financial crime of this nature to be noticed and by then a lot of damage is done. Vigilant employees and business leaders are the best defense against such crimes. However, to safeguard from internal fraud, protective measures should be put in place. If you own a business, you should always be careful about the handling of financial information and create procedures that prevent financial crimes from being committed. This information is for education only and is not intended as legal advice.