354 22: Fraudulent and criminal behaviour Part H Governance and ethical issues relating to business
Chapter Roundup
Crime is conduct prohibited by the law. Financial crime can be international in nature, and there is a need
for international co-operation to prevent it.
Insider dealing is the statutory offence of dealing in securities while in possession of inside information
as an insider, the securities being price affected by the information.
The law on insider dealing has had some limitations, and new offences, such as market abuse, have been
brought in to reduce security related crime.
Market abuse relates to behaviour which amounts to abuse of a person's position regarding the stock
market.
Money laundering is the attempts to make money from criminal activity appear legitimate by disguising
its original source.
In the UK, there are various offences relating to money laundering, including tipping off a money
launderer (or suspected money launderer) and failing to report reasonable suspicions.
Bribery is a serious offence which often relates to the offering and receiving of gifts or hospitality.
Criminal offences in relation to winding up include: making a declaration of solvency without reasonable
grounds and fraudulent trading.