Steve Smart, the joint executive director of enforcement and market oversight, recently addressed the 1LoD Financial Crime Summit. He highlighted that financial crime, often seen as a minor offence, is a significant issue. It includes small-scale fraud and seemingly harmless phishing emails. Though non-violent and technical, these crimes are part of a larger problem.
Contrary to the perception of these crimes being victimless, they profoundly impact individuals and businesses. They usually involve theft of sensitive personal or financial data, leading to substantial financial loss. The alarming increase in these crimes over the past 30 years indicates that despite efforts by regulators and law enforcement, the problem persists.
Shifting the Perspective on Financial Crime
Steve Smart emphasized the need to alter the perception of financial crime. We should not view this offence as lesser or victimless. The impact can be as devastating as a physical crime.
Furthermore, the perception of these crimes as non-violent and technical shouldn’t downplay their severity. Often meticulously planned and executed by organized criminal groups, these crimes demand serious attention. This viewpoint is vital to ensure financial crime receives the severity it warrants.
Smart also underlined everyone’s role within the financial sector in combating financial crime. It’s not solely a matter for law enforcement or regulatory bodies. Businesses and individuals also play a crucial role in detecting and preventing these crimes.
On top of that, the financial sector itself has a significant role in combating financial crime. By establishing robust internal controls, stringent compliance procedures, and effective staff and customer education, the sector can significantly contribute to reducing these crimes.
Steve Smart’s speech clearly conveyed the urgent need to change the narrative around financial crime. It’s neither a lesser offence nor a victimless one. By shifting our perceptions and combining our efforts, we can effectively tackle financial crime.
