20150730 Beware false prophets – and “experts.”

1. All financial crimes involve money laundering

This is both incorrect and misleading: It’s been long recognised that all frauds, etc. result in (not involve) money laundering. As a discrete point, it is not only “financial crime” that leads to money laundering. Any crime that generates a benefit results in money laundering. Therefore burglary for the theft of a television which is then sold creates money laundering in respect of the proceeds of that sale.

2. All financial crimes result in tax evasion

This is completely untrue. Organised crime gangs often pay tax.

3. All financial crimes require a financial institution

This is completely untrue. Tricking an elderly person into paying cash for unnecessary work to his roof is a financial crime but does not involve a financial institution at any point.

4. All financial crimes interface with government agencies

This is completely untrue. Indeed, it is so nonsensical that it is difficult to think of an example, other than a fraud on a government department (including tax evasion) or agency, bribery or theft from the public purse, that has any direct relationship with a government agency or department.

5. All financial crimes create the need for asset recovery – All financial crime leaves someone POORER than they were before

This is true, up to a point. But not all financial crimes leave someone poorer. Bribery, for example, it is an offence for mutual benefit and both parties get something they want.