MODULE SPECIFICATION
KEY FACTS
Module name Financial Crime
Module code SMM739
School Bayes Business School
Department or Specialist Masters Programme
equivalent
UK credits 10
ECTS 5
Level 7
MODULE SUMMARY
Module outline and aims
This course aims to foster the understanding of the tools used by the financial industry
to detect and prevent financial crime. Financial crime is a substantial threat to the
economy and financial stability. As banks receive more and more severe fines due to
financial misconduct such as money laundering, this module will be of interest to those
of you with a strong interest in understanding the impact of financial crime on banks and
financial institutions and the processes that banks are required to put in place to prevent
misconduct (compliance).
After a brief introduction on the nature and types of financial crimes in modern
economies, we will discuss and analyse different methods to detect and prevent money-
laundering, fraud and cyber financial crimes. Detailed real-world case studies will be
discussed in class for each type of financial crime. Finally, we will analyse the main
initiatives aiming to tackle financial crime internationally.
Content outline
Topic #1 – Introduction
• Financial crimes overview
• Definitions and current state of the art
Topic #2 – Money Laundering
• The three stages of ML
• ML methods and vehicles
• The Russian Laundromat
• Other international case studies
• Regulatory frameworks
Topic #3 – Understanding and Preventing Money Laundering
• Money laundering indicators
• Key Banks Balance Sheet and Business model indicators to spot Money
Laundering
Topic #4 – Understanding and Preventing Fraud
• Internal Fraud
• Fraud in lending, insurance, credit markets
• False positive, False negative
• Money and commodity flows
• Operational Risk indicators and Basel framework
• Case studies (i. e.,Herstatt, Kerviel, Lee)
Topic #5 – Understanding and Preventing Cyber financial crime
• Red flags
• Recognizing and detecting issues
• Responding to Cyber Incidents
• Industry best practice
• Case studies
Topic #6 – International initiatives to prevent financial crime
• Global anti-corruption compliance and enforcement
• Asset recovery (Star)
• International Agreements and Standards (FACTA…)
WHAT WILL I BE EXPECTED TO ACHIEVE?
On successful completion of this module, you will be expected to be able to:
Knowledge and understanding:
• Review the different types of financial crimes and the role played by central
banks and regulators in preventing them;
• Recognise the different strategies guiding the detection of money-laundering,
fraud and cyber financial crimes;
• Analyse the most recent cases of financial crimes and global cooperation efforts
on crime prevention;
• Explain the importance of preventing financial crimes for financial stability and
national and international security;
Skills:
• Assess the detection of financial crime and the implications for the functioning
of the financial system and the economy at large;
• Critically evaluate the implications of financial crime-related sanctions on banks
and other financial institutions, with particular attention to emerging risks, such
as cyber-crimes;
• Report, verbally or through writing a memo, on the tools and strategy used to
detect financial crimes.
Values and attitudes:
• Demonstrate self-awareness in terms of your own behaviour within a team dynamic.
• Discuss the importance of having a robust ‘Compliance Culture’ within an
organisation.
HOW WILL I LEARN?
This module will be taught primarily through lectures and will require you to work in
groups for some of the time.
Teaching pattern:
Teaching Teaching Contact Self-directed Placement Total
component type hours study hours hours student
(scheduled) (independent) learning
hours
Lecture Lecture 18 70 0 88
Group work Independent 0 12 0 12
Study
Totals: 18 82 0 100
WHAT TYPES OF ASSESSMENT AND FEEDBACK CAN I EXPECT?
Assessments
This module will be assessed by 100% coursework comprising an in-class
presentation (20%) and a written report on assigned case-studies (80%).
Assessment pattern:
Assessment Assessment Weighting Minimum Pass/Fail?
component type qualifying
mark
In class presentation Practical 20% 0 N
Exercises
Report on the Written 80% 0 N
assigned case study assignment
including essay
Assessment criteria
Standard MSc grade related assessment criteria will apply.
Assessment criteria are descriptions of the skills, knowledge or attributes you need to
demonstrate in order to complete an assessment successfully and Grade Related
Criteria are descriptions of the skills, knowledge or attributes you need to demonstrate
to achieve a certain grade or mark in an assessment. Assessment criteria and Grade
Related Criteria for module assessment will be made available to you prior to an
assessment taking place. More information will be available from the module leader.
Feedback on assessment
Students will receive oral feedback on their in-class presentation. Feedback on reports
will be posted on Moodle. Feedback on the assessment will be provided within three
weeks of submission.
Assessment Regulations
The Pass mark for the module is 50%. Any minimum qualifying marks for specific
assessments are listed in the table above. The weighting of the different components
can also be found above. The Programme Specification contains information on what
happens if you fail an assessment component or the module.
Assessment Regulations and Policy:
https://www.city.ac.uk/about/city-information/governance/constitution/senate-
regulations
https://www.city.ac.uk/__data/assets/pdf_file/0008/68921/assessment_and_feedback_
policy.pdf
INDICATIVE READING LIST
The slides used for presentation in each lecture will be made available in advance.
Although they are not exhaustive of the issues covered, they provide an effective
starting point for understanding the material covered. The following is a list of
additional references (not of compulsory readings).
Alison Matthews (2019) Anti-Money Laundering Toolkit 2nd ed ISBN 9781784460785
Ryder, N. (2014). The financial crisis and white collar crime: The perfect storm?.
Edward Elgar ISBN 9781781000991
Robert J. Souster (2013) Financial Crime and Money Laundering: Including Anti-
Money Lending Policies and Control Systems 2nd Edition ISBN-13: 978-1906403904
Additional and updated material for class discussion will be provided before each
lecture.
Version: 1.0
Version date: December 2019
For use from: 2020-21
Appendix: see http://www.hesa.ac.uk/content/view/1805/296/ for the full list of
JACS codes and descriptions
CODES
HESA Code Description Price Group
133 Business and D
Management Studies
JACS Code Description Percentage (%)
N310 Banking 100%
HeCoS Code Description Percentage (%)
100107 Finance 100%
