14_Financial Profiling and Investigation

Question 1

Full Net Worth Technique

Answer 1

• Definition: Method to determine an individual’s financial status by comparing assets to liabilities.
• Process: Subtract all debts from assets to calculate net worth.
• Usefulness: Effective for mid to high-level targets, such as leaders of criminal organizations.

Question 2

Source and Application of Funds

Answer 2

• Definition: Analyzing income and expenses to identify unexplained funds.
• Process: Compare known income sources to total expenses to find funds of unknown source.
• Target: Low-level criminals with high lifestyles and few assets.

Question 3

Bank Deposit Analysis

Answer 3

• Definition: Examining bank accounts to track deposits and expenditures.
• Process: Identify all deposits, including inter-account transfers, and subtract expenditures.
• Usefulness: Provides reliable evidence of income and spending patterns.

Question 4

Unit and Volume Analysis

Answer 4

• Definition: Estimating sales proceeds based on known purchases.
• Example: Using the number of deliveries to a brothel to estimate customer volume.
• Application: Useful for identifying business activity, especially in illegal enterprises.

Question 5

Common Defense Tactics

Answer 5

• Cash on Hand Story: Claiming accumulated cash over time.
• False Loan/Inheritance/Gifts: Providing false sources for unexplained funds.
• Holding Funds for Someone Else: Claiming ownership of assets for others.
• Joint Ownership Defense: Sharing ownership of assets to avoid suspicion.

Question 6

Money Laundering Schemes

Answer 6

• Placement, Layering, Integration: Steps in laundering illicit funds.
• Avoidance Tactics: Smurfing, structuring to evade detection.
• Offshore Methods: Using shell corporations and nominee directors.

Question 7

Investigator Strategies

Answer 7

• Early Evidence Collection: Obtain suspect’s story during interviews to prevent later defense.
• Regressive Analysis: Trace back funds to discredit suspect’s claims.
• Professional Weaknesses: Professionals involved in schemes may be easier to crack than criminals.

Question 8

Tips for Investigators

Answer 8

• Focus on Documentation: Verify claims through bank records, invoices, and transactions.
• Stay Alert to Patterns: Recognize recurring methods and tactics used in laundering and evasion.
• Collaborate with Experts: Utilize forensic accountants and legal advisors for thorough analysis.