Law of Financial Crimes - Desklib

This article covers the laws and regulations related to financial crimes such as insider dealing, money laundering, fraud, and more. It explains the purpose of money laundering regulations, the international dimensions of money laundering regulations, and the consequences of money laundering on society. It also analyzes the general offenses of financial crimes under Financial Services and Markets Act 2000, Fraud Act 2006, and Theft Act 1968.

LAW OF FINACIAL
CRIMES

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
TASK 1............................................................................................................................................4
A.C. 1.1. Explain civil offence according to the Financial Services and Markets Act 2000 and
identify sources of law on insider dealing...................................................................................4
A.C. 1.2. Compare the statutory frameworks and EC context on dealing with insider dealing
and market abuse.........................................................................................................................5
A.C. 1.3. Analyse the general offences of financial crimes under Financial Services and
Markets Act 2000, Fraud Act 2006 and Theft Act 1968.............................................................6
A.C. 1.4. Justify how the market abuse regulation sand powers of regulators act decisively
against insider dealing and related financial frauds....................................................................6
TASK 2............................................................................................................................................6
A.C. 2.1. Explain the purpose of money laundering regulations................................................6
A.C. 2.2. Evaluate the international dimensions of money laundering regulations...................8
A.C. 2.3. Outline the background of proceeds of Crime Act 2002 and explain offences under
its provisions...............................................................................................................................8
A.C. 2.4. Assess the consequences of money laundering on the society....................................9
TASK 3..........................................................................................................................................10
A.C. 3.1. Explain historic and economic context of general provisions of law on money
laundering, terrorist financing, corruption. ..............................................................................10
A.C. 3.2. Identify the EC Market Abuse Directive to control market manipulation and abusive
practices. ...................................................................................................................................10
A.C. 3.3. Explain the role of criminal law in supporting financial regulations in United
Kingdom....................................................................................................................................11
A.C. 3.4. Critically analyse civil recovery in context of financial crimes ..............................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Financial laws are the laws that has been dealing over those laws which makes worn in
relation over financial activities is covered. These laws helps in developing those standards that
makes process of finances within an organization performed in secured manner. Also financial
law helps in preparing framework that makes all kind of aspect related to finance covered with
more effectiveness. The law makes financial stability attained leading over making economical
growth achieved within a country. Also the law deal with money laundering and theft law. Scope
of these law are wider as they directly impacts financial tasks of a country. Nature is dynamic
due its tendency to impact budget formed within a country. This file contains three which covers
concept related to terrorism, money laundering and theft laws. Also in this file things based over
fraud and corruption is been handled.
MAIN BODY
TASK 1
A.C. 1.1. Explain civil offence according to the Financial Services and Markets Act 2000 and
identify sources of law on insider dealing.
1The Financial Services and Markets Act 2000 come into existence on 14th June 2000.
The act has been formed as a single statutory regime over regulation of different kinds of
financial sectors with the help of Financial Services Authority. Further act covers about various
kinds of aspects which has been making an finances managed within a country and has replaced
over making financial services with regulators that has been including Self-regulating
organizations. FSA is acquired over making formal statutory responsibility in order to regulated
over insurers, building societies and friendly societies. Under it FSA has already exercise
banking regulatory functions of Bank and England. Also the act makes changes within the
process which makes investment carried by business professionals like accountancy bodies and
the Law Society. Under the act FSA is required to act as per the regulatory objective that has
been formed by the act. While exercising rule-making power proposal is required to set out.
Further the objectives of the act are as follows:
 maintaining confidence in the financial system.
1 'Crimes: "Infamous" Crimes' (2016) 22 Michigan Law Review

 promoting public understanding of the financial system.
 securing the appropriate degree of protection for consumers.
 the reduction of financial crime by regulated persons and by those who are carrying on
regulated activity in contravention of the General Prohibition in Section 21 of the act2.
Further key areas that is been covered by the act is based over providing statutory powers
to authorised persons in order to deal with market abuse, market manipulation, financial
promotion and investigations.
The major civil offence that is been covered within the act is insider dealing which is
based upon trading of stock in order to attain one's personal advantage of outcome received
marks once personal interests. In this insider dealing is based over buying and selling of public
traded company stock by an individual having non-public, material information about that stock.
There are certain sources which makes insider dealing happen illegal selling of stocks, buying
and selling of shares of listed organizations, using information that has not been disclosed in
public. Another civil offence is market abuse that means those circumstances within which an
unlawful behaviour is been observed by an business organization which give rise to manipulation
in market. In this only financial investors of markets are at unreasonable disadvantage.
A.C. 1.2. Compare the statutory frameworks and EC context on dealing with insider dealing and
market abuse.
The statutory framework that has been formed by UK in relation to deal over market
abuse and insider dealing is Financial service and Market act 2000 the act has made insider
dealing and market abuse illegal within UK. EC has for market abuse regulation which has been
dealing over market manipulation done in unlawful manner. Both statutory framework is based
upon making rules and regulation that is been used within UK and EU membered countries.
Financial service and Market act 2000 in this act penalties and punishment is been formed which
is applicable in UK. The objective of the legislation is to ensure that the UK market is fair and
that everyone has access to full and similar information to make informed 'buy and sell'
decisions. The regulation formed by EC is one of the most effective part of EU that has made
market abuse regime expand various financial instruments that comes over regime and helps in
making detail compliance achieved over requirements. Further it has made insider dealing to be
2 'Crimes: Criminal Intent In Statutory Crimes' (2017) 24 Michigan Law Review

deal in more effective manner by expanding the scope of financial instruments by increasing
multilateral trading facility. It has helps EU in solving problems related to insider dealing by
making it legal only to the extend it has not been violating the rules of market abuse regulation
UK.
A.C. 1.3. Analyse the general offences of financial crimes under Financial Services and Markets
Act 2000, Fraud Act 2006 and Theft Act 1968.
General offences which is based upon financial crime in Financial Services and Markets
Act 2000 has been covered within section 397 of the act. 3They are misleading statements,
misleading impressions and statements, and misleading impressions. Under fraud act 2006
general offences are obtaining services dishonestly and companies fraudulent business. In the
Theft Act 1968 general offences related to financial crime are false accounting statement, false
statement made by companies directors.
A.C. 1.4. Justify how the market abuse regulation sand powers of regulators act decisively
against insider dealing and related financial frauds.
Market abuse regulation has helped in controlling insider dealing and fraud related to it
by providing various kinds of powers that is based over required information that is related to
general powers, entry of premisses under warrant and retention of documents under section
122D. Then it has provided administrative powers which is based upon suspending of trading in
relation to financial statement. These powers has helped in making insider dealing controlled
within a country. Also the regulation has made act to be developed over dealing with market
abuse and insider dealing by making it an criminal offence related to finance.
TASK 2
A.C. 2.1. Explain the purpose of money laundering regulations.
The Money Laundering, Terrorist Financing and Transfer of Funds that is based upon
EU's 4th Directive which deals over money laundering. It has replace the previous Money
Laundering Regulations 2007 and and the Transfer of Funds (Information on the Payer)
Regulations 2007. The regulation has brought various changes which has helped in dealing with
money laundering problems. Further the act has been gone through lot of rounds which has taken
3 Mendlow G, 'Thoughts, Crimes, And Thought Crimes' [2020] Michigan Law Review

place form September and November 2016 and second round has taken place between March
and April 2017. The final instrument has not changed substantially from the most recent
consultation draft.
Changes that has been made within the act is based over the previous legislation and has been
evolving content and reorganization of structure. The main intention of the act is to make various
kinds of gaps covered that existed in MLR 2007. 4Also the act has been changing approach to
customer due diligence. In this seeking over preventing new means of terrorist financing which
includes e-money and prepaid card. Under it transparency has been formed over beneficial
ownership of an organization and trusts. It makes effective enforcing of sanction possible in
more effective way. The regulation that has been formed in relation to money laundering
regulation is based upon various aspects which is explained as follows:
The MLR act 2017 has been formed through additional obligations which is based over
private sector firms which deals over high money laundering risk areas. In this aim has been
made over stopping crime with the help of professional services which makes money laundering
possible. As per the acts firms uses identification and monitoring approach upon services that is
provided. Legal roles is also been covered in the act that can be applied over independent legal
professionals. Further certain important aspects of the act is given as follows:
 Buyers and seller over an business entity or real property.
 Managing clients money with securities and assets.
 Opening bank, savings or securities accounts
 Organization of various operation taking place within an organization.
 It creates operates or manages trusts, companies, foundations or similar structures
The MLR 2017 act is not applicable upon:
 Legal professionals which is been employed through an public authority.
 Working that has been undertaken by public certifying officer as there is no substantive
role over underlying transaction.
A.C. 2.2. Evaluate the international dimensions of money laundering regulations.
In this international and global authorities has been given powers to deal with money
laundering issues. As international standards Financial Action Task Force is been developed
4 'Crimes: Criminal Intent In Statutory Crimes' (2017) 24 Michigan Law Review

which has made various kinds of rules and regulation formed leading towards making money
laundering decreased. It has played important part in making issues related to money laundering
solved at global level.
A.C. 2.3. Outline the background of proceeds of Crime Act 2002 and explain offences under its
provisions.
The Proceeds of Crime Act (POCA) it is based over the recovery of confiscation which
makes proceeding done in relation to criminal activities which is related to money laundering.
This act was brought into force on 24th March 2003. Earlier all kinds of criminal proceedings
based over money laundering was deal within Drug Trafficking Act 1994 and the Criminal
Justice Act 1988. Under the act new reforms has been set in order to deal over money laundering
and has helped in making its connection possible with criminal. 5The act is only applicable over
POCA offences that has taken place on or after 24th March 2003. The work of act is based upon
certain aspects which is based upon theft, fraud and market abuse. Proceeding within the act
required to be started as per the conditions which has been explained as follows:
 In this defendant is required over making convenience over offences proceedings of
which is been conducted in front of crown court. In these cases sentenced is to be passed
by the Crown Court themselves.
 Under this prosecution is been asking court in order to do proceedings as per POCA in
appropriate manner.
 POCA proceedings These are one of the most important part that has been used in order
to mark end over particular case. All the order within the proceedings is been passed by
the Crown Court or the Magistrate Court.
In this offences which is been covered is based upon both civil and criminal nature that has
caused insatiability in society. Also cases that are based on money laundering with insider
trading is been covered. It has helped in marking out this offences which is based
A.C. 2.4. Assess the consequences of money laundering on the society.
Money laundering is one of the most common crimes taking place within society and has
caused imbalance created within it. 6Such crimes has been affecting economic development of
5 'Crimes: "Infamous" Crimes' (2016) 22 Michigan Law Review
6 'Crimes: Larceny: Asportation' (2021) 27 Michigan Law Review

society. Through impacting financial sector institution that leads upon making economic growth
affected through promoting crime and corruption which reduced efficiency of operation in
financial sector of an organization. Then it has caused damaged within tax sectors as revenue
generated form the tax is very significant share in revenue of public. Sudden rise in tax makes
public suffer a lot as there deficit increases. Also black money is been collected which is crime
covered under money laundering only. It has made various ethical aspects affected as people lose
there moral values that makes them commit such crimes at big level. Further money laundering
make various problems caused in relation to those aspects that has been dealing upon making
finances within society more affective in nature. Money laundering is one of the most prevailing
issue which has cause affect on income distribution as it has been favouring particular groups
causing social degeneration. In this most critical damages is caused to society as there means of
income generation reduces which develop tendency within them over committing crime. Money
lauding has impacted society through making there moral values reduced and making them do
corruption bribery and other kinds of crime.
TASK 3
A.C. 3.1. Explain historic and economic context of general provisions of law on money
laundering, terrorist financing, corruption.
Financial Action Task Force (FATF)
The Financial Action Task Force has been formed in order to make global money
laundering system developed which make inter government bodies form various kinds of
international standards which has been aiming in order to make prevention of money laundering
and terrorist financing done over harm cause to society. 7In this policy making is been done
keeping in mind necessary aspect which cam create problem at global level. Thus the policies is
based over various money laundering cases analysis. Further it has developed recommendations
and standards that has been ensuring co-ordinated over global response which makes prevent
organised regarding crime, corruption and terrorism. It has been helping all authorities in order to
attain power over criminal dealing done in relation to illegal drugs, human trafficking and other
7 'Crimes: Larceny: Asportation' (2016) 27 Michigan Law Review

crimes. Further it has review money laundering and terrorist financing which makes strength and
standards to address new risk which has made virtual assets that is been present in the form of
cryptocurrencies. It has been ensuring that monitors has been implying standards that has made
account which is not complied.
A.C. 3.2. Identify the EC Market Abuse Directive to control market manipulation and abusive
practices.
8Under the fifth EU Money laundering directive that has been launched in European
parliament and of council has been formed on the uses of financial system which is based upon
purpose of money laundering or terrorist financing. In this various kinds of core elements is been
cover and has been aiming as follows:
 Preventing risk that is associated with the used of currencies in virtual form in order to
finance terrorists and limiting the use of pre-paid cards.
 In this improvements over safeguards in relation to financial transaction which makes
high risk of finances developed. It has been broadening the scope of designing bodies as
per the existing legislation.
 In this facilities has been increased which made transparency formed over owning the
organization and trusts by establishing beneficial ownership registers.
 Then ensuring over access and creation is been centralized national bank and payment
over making accounts resister. This has been progressed in relation over covering the
aspects of money laundering with its impact at global level.
A.C. 3.3. Explain the role of criminal law in supporting financial regulations in United Kingdom.
United Kingdom has developed one of the most effective frameworks which has been
making set of laws over crimes like laundering, terrorist financing and fraud. 9These offences has
been developed in relation to those criminal approach and is been committed over possession of
property making suspicion represent within crime proceedings. Also various kinds of changes
taken place over making various aspects developed that has made criminal laws applied within it.
8 Mendlow G, 'Thoughts, Crimes, And Thought Crimes' [2020] Michigan Law Review
9 Crimes: "Infamous" Crimes' (2016) 22 Michigan Law Review

certain acts has been developed making money laundering part of criminal aspect that is
Proceeds of Crime Act 2002, Terrorism Act 2000 and Fraud Act 2006. These acts together has
made various kinds of money laundering aspect understood in more effective way.
A.C. 3.4. Critically analyse civil recovery in context of financial crimes
Civil Recovery proceedings is an enforcement authority that has been pursued over
making suppuration done on the basis of unlawful activity taking place. CROs is one of the most
important tool that has been used over helping in combating crime. In this facilitation is been
done over making recovery upon proceedings in relation over various crimes that is based upon
money laundering. It has helped in making sure that all kinds of financial crime is been hadeled
in more effective way with the helps of proper process involved within it. Also the proceedings
makes various kinds of offences related to finance covered in more effective way which has
helped in making solving cases based on finances. It has made proper framework developed in
relation over unlawful activities that is been conducted in relation to financial crimes. These
crimes is been deal with the help of proper process within which High Court is is involved and
the cases are brought in front of it. In this claim has is been stated in front of the Queens Bench
Division and then application over freezing of property is issued.
CONCLUSION
From the above discussion it can be concluded that Financial crime are those crimed that
is based upon making financial problems like corruption, money laundering and theft solved with
more effectiveness. In this crimes based upon money is been covered. Further the file covers
about reaction legislations that has been developed in order to deal with such crimes.10 Then in
first task legislation related over money abuse and insider money dealing is been covered. Both
are financial crime and is interlinked with each other. Then in second task money laundering is
been covered which makes illegal transfer of money that makes corruption and black money
collected. In third task money laundering in relation to terrorist financing and corruption is
covered then in the end criminal ad civil process over trials is covered.
10 'Crimes: Criminal Intent In Statutory Crimes' (2017) 24 Michigan Law Review

REFERENCES
Books and Journals
'Crimes: "Infamous" Crimes' (2016) 22 Michigan Law Review
'Crimes: Criminal Intent In Statutory Crimes' (2017) 24 Michigan Law Review
Mendlow G, 'Thoughts, Crimes, And Thought Crimes' [2020] Michigan Law Review
MacKinnon C, 'Crimes Of War, Crimes Of Peace' (2018) 4 UCLA Women's Law Journal
'Crimes: Construing Possession' (2019) 24 Michigan Law Review
'Crimes: Larceny: Asportation' (2021) 27 Michigan Law Review
'Crimes: Larceny: Asportation' (2016) 27 Michigan Law Review
Crimes: "Infamous" Crimes' (2016) 22 Michigan Law Review
'Crimes: Criminal Intent In Statutory Crimes' (2017) 24 Michigan Law Review
Mendlow G, 'Thoughts, Crimes, And Thought Crimes' [2020] Michigan Law Review
MacKinnon C, 'Crimes Of War, Crimes Of Peace' (2018) 4 UCLA Women's Law Journal