In today’s day and age, it is necessary for businesses to be aware of the financial crimes taking place in our environment and what can be done to minimize the risk. You need to create a safe and risk-free environment so you can conduct business with peace of mind. Following are some basics to help you understand financial crime & what can be done by you to avoid being a victim of Financial Crime.
What is Financial Crime?
Financial crimes, including tax evasion, money laundering, and terrorist financing undermine political and economic interest and pose a serious threat to national security. Be aware of financial risks in your environment, conduct business in a safe manner.
Money Laundering:
The process of concealing or disguising the existence, source, movement, destination or use of illicitly derived funds to make them appear legitimate. Business includes Illicit Trafficking in Narcotic Drugs, Corruption and Bribery, Smuggling, Cash Smuggling, Tax Crimes, Illegal MVTS, Terrorism/TF, Organized Crime, Human Trafficking, Arm Trafficking, Robbery, Market Manipulation, Cybercrime, Fraud and forgery, Kidnapping, Extortion, Sexual Exploitation, Trafficking of Good, Counterfeiting Currency, Piracy of Products, Murder, Environmental Crime and Marine Piracy.
Terrorist Financing:
The act of unlawfully and willingly providing or collecting funds with the intention that they should be used or, in the knowledge that they are to be used, in support of an act of terrorism.
Social and Religious Norms:
The concept of person to person charity, khairat, sadqa, zakat or helping orphans / widows or religious organization serving Islam stems from Pakistan socio-economic and religious culture. Donations are a principle source of funding for all NPOs in Pakistan, however, be careful while donating to NPOs, where utilization is not clear.
Sanctions & Embargo:
Imposing asset freezes and/or financial or economic prohibitions, controls and restrictions against targeted activities, persons, governments and/or jurisdictions.
Keep yourself and your accounts safe
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Give proper details to your Bank about how much credit or debit you expect, number of transactions you conduct, where and when you get your funds to ensure that your financial pattern is established and kept secure.
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Regularly view your account statement to ensure it is correct. Report anything unusual to the Bank immediately.
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Update your information with the Bank, such as change in address, source of income, status etc to ensure your details are current.
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Inform the Bank if you conduct any transactions which are out of the ordinary.
The information you give protects you and your business.