Definition:
Financial crime refers to illicit activities such as fraud, bribery, money laundering, and terrorist financing within the financial industry.

Contextual Explanation:
Regulations like Anti-Money Laundering (AML) laws and the Foreign Corrupt Practices Act (FCPA) are designed to detect and prevent financial crimes. Payment providers must implement compliance frameworks to mitigate risks.

Why It Matters:
Engaging in or failing to prevent financial crimes can lead to severe penalties, including legal action, license revocation, and reputational harm.

Example:
A company failing to report suspicious transactions under AML regulations may face hefty fines and regulatory scrutiny.