Money Laundering is a complex type of fraud, which involves a conglomerate of participants, resources, and circumstances. It’s a criminal activity classified as a white-collar offense with a rich history and global cases. It is wrapped around illegal financial transactions with the objective to hide the criminal nature of the income. Sometimes this term is applied to other aspects of financial crimes, like violation of the securities, digital currencies, credit cards, traditional currency, terrorism financing and evasion of international sanctions. The penalties for these felonies vary according to the level of severity.
Corporate fraud refers to large organizations that deceive their investors, analysts and auditors about the real financial condition of a corporation. Corporate fraud results not only in financial losses of the investors, but also creates great potential damage to the U.S. economy.
Such fraud may be accomplished through:
- manipulation of share prices
- control of financial data
- artificially inflated financial performance
- false indicators
- different valuation measurements