Knowledge Base

Financial Crimes are criminal activities carried out by individuals or criminal organizations to provide economic benefits through illegal methods. Financial crimes, which have become a critical issue in recent years worldwide, cause significant harm to the economy and society. Income from financial crimes corresponds to a substantial proportion of global GDP. Therefore, regulatory bodies constantly develop new tactics to combat financial crimes. In addition, with the development of technology, criminals develop new tactics. Today’s most common financial crimes are terrorist financing, money laundering, corruption, and fraud.

The Bank stress test refers to the measurement of the losses that banks will experience in possible adverse scenarios. The analysis under hypothetical scenarios is designed to determine whether a bank has enough capital to withstand a negative economic shock. An example of these negative scenarios is a deep recession or a financial market crash.

When financial products and services are digital, verification systems should follow the lead. Today, regulatory organizations have implemented measures allowing financial institutions to conduct the onboarding process online. This is accomplished through eKYC, which simplifies the processing of financial services. The availability of eKYC online has made it easier to access digital financial goods and services such as establishing a bank account to investing and even taking a loan.

The European Banking Authority (EBA) aims to protect the financial stability, integrity, efficiency, and orderly functioning of the banking sector in the EU. The European banking authority is mandated to assess risks and vulnerabilities in the EU banking sector. There are also some EBA regulations. The European Banking Authority was established in 2011 by taking over the responsibilities of the European Banking Supervisory Board. It was created by the European Parliament and the Council of the European Union to combat financial crimes as an institution above national regulators. Headquartered in England, EBA is the most authoritative regulator of the banking industry. After the UK leaves the European Union, it is planned to shift the central position of EBA to a

Political exposure is a term that is frequently used in the financial sector. It refers to individuals who hold a prominent public position and may be susceptible to bribery or other types of financial crimes. Such individuals are known as politically exposed persons (PEPs). PEPs can be either domestic or foreign. Domestic PEPs are those who hold high-ranking public positions within their own country, while foreign PEPs hold similar positions in other countries. In this blog post, we will explore the differences between domestic and foreign PEPs, the risks associated with them, and the steps that financial institutions can take to manage these risks and comply with regulations.

Political exposure is a term that is frequently used in the financial sector. It refers to individuals who hold a prominent public position and may be susceptible to bribery or other types of financial crimes. Such individuals are known as politically exposed persons (PEPs). PEPs can be either domestic or foreign. Domestic PEPs are those who hold high-ranking public positions within their own country, while foreign PEPs hold similar positions in other countries. In this blog post, we will explore the differences between domestic and foreign PEPs, the risks associated with them, and the steps that financial institutions can take to manage these risks and comply with regulations.

Terrorism and terrorist financing are significant problems all over the world. If the financing of terror cannot be prevented, this has big negative consequences. The financing of terrorism is the financing required by terrorists to carry out terrorist acts. Terrorists provide this funding through donations, money laundering, and drug trafficking. Terrorist funding must be prevented to end terrorism. Terror financing is mostly provided through financial systems. Financial institutions assist terrorism if the offender does not take the necessary measures. Therefore, companies aim to protect themselves from this crime by taking precautions.

Customer Due Diligence (CDD) is an essential component of anti-money laundering (AML) programs implemented by companies and financial institutions. In today’s world, financial crimes such as money laundering and terrorist financing have become increasingly complex and sophisticated, posing significant risks to businesses of all sizes. As a result, implementing effective CDD procedures has become a fundamental requirement for organizations under AML liability.

Adverse media refers to negative or damaging information about individuals, organizations, or entities that can pose significant risks to businesses and other institutions. Such information can include news articles, social media posts, legal filings, and other public records that indicate potential involvement in financial crimes, corruption, or other illicit activities. The ability to effectively identify, collect, and analyze adverse media data is crucial for managing reputational, legal, and regulatory risks.