Last updated: 16 June 2017
At a glance
- Financial crime is any crime involving money. The Financial Services and Markets Act 2000 defines financial crime ‘to include any offence involving (a) fraud or dishonesty; (b) misconduct in, or misuse of information relating to, a financial market; or (c) handling the proceeds of crime’.
- Financial crime – including mortgage fraud – is of considerable concern to lenders.
- Having systems and controls in place to prevent and detect financial crime within and across the lending industry helps minimise losses and reduce the impacts of financial crime on both lenders and customers.
- The CML and our members are involved in a number of activities aimed at detecting and preventing financial crime: from producing guidance for our members; to hosting events to raise awareness of emerging issues; and working with regulators, the legal and valuation professions on measures to tackle financial crime.
- Lenders, customers and other businesses and professions are targets for fraudsters. For more information on current fraud scams, please visit the following websites:
- Action Fraud - a service run by the City of London police - the central reporting tool for anyone who has been a victim of fraud
- The Metropolitan Police
- FCA - regulators of all providers of financial services in the UK
- National Crime Agency - responsible for managing the major criminal threats
the UK faces. It includes an Economic Crime Command
We support a collaborative approach to fraud awareness and prevention, by working with industry and other stakeholders such as HM Revenue and Customs. CML has a good-practice guide on mortgage fraud prevention.
Why this is important for lenders
Lenders have a regulatory obligation to ensure that they have financial crime prevention policies and practices in place. The FCA has issued guidance for firms on financial crime.