Financial crime risk refers to the potential for loss or legal consequences arising from activities such as money laundering, fraud, bribery, corruption, and other illegal financial activities. Organizations face this risk from both internal and external threats, which can lead to regulatory penalties, reputational damage, and financial losses. Effective management involves implementing robust anti-money laundering (AML) and compliance programs, conducting thorough due diligence on clients and transactions, training employees on identifying and reporting suspicious activities, and utilizing advanced monitoring systems to detect and prevent financial crimes.

Basel scope:

• Pillar 1
• Pillar 2

Capital requirements:

Mitigated by Capital

Related Links:

•       Basel Framework