Financial Crime Compliance (FCC)

🔹 Definition

Financial Crime Compliance (FCC) refers to the frameworks, processes, controls, and technologies that organizations—particularly financial institutions, fintech companies, and regulated entities—implement to prevent, detect, and respond to financial crimes. These crimes include money laundering, terrorist financing, fraud, bribery and corruption, tax evasion, and sanctions violations.

FCC programs are essential for meeting regulatory requirements, protecting institutional integrity, and avoiding reputational and financial harm. They align closely with AML/CFT, KYC, and sanctions screening programs.

🔹 Frequently Asked Questions (FAQs)

Q1: What are the key components of a Financial Crime Compliance program?

• AML/CFT policies and procedures
• Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD)
• Sanctions screening (OFAC, UN, EU, etc.)
• Transaction monitoring systems
• Suspicious activity reporting (SAR/STR)
• Whistleblower channels and internal reporting frameworks
• Risk assessments and regulatory audits
• Training and awareness programs for employees

Q2: What types of financial crimes does FCC address?

• Money laundering and terrorist financing
• Fraud (first-party, third-party, cyber-enabled)
• Sanctions evasion
• Corruption and bribery (FCPA, UK Bribery Act compliance)
• Market manipulation and insider trading
• Tax crimes, especially in cross-border scenarios

Q3: Which regulatory frameworks require FCC programs?

• FATF Recommendations
• Bank Secrecy Act (BSA) – U.S.
• EU AML Directives
• MAS Notices (e.g., 626, 824) – Singapore
• HKMA AML Guidelines – Hong Kong
• AUSTRAC Rules – Australia
  FCC is often audited by regulators during routine inspections or enforcement actions.

Q4: What technologies support FCC operations?

• Transaction Monitoring Systems (TMS)
• Sanctions and PEP Screening Engines
• Case Management Platforms
• KYC/CDD Automation Tools
• Machine Learning for anomaly detection
• eKYC and biometric identity verification tools
• RegTech solutions that ensure continuous compliance and auditability