8_ML Techniques Flashcards
What is the purpose of using legal entities in money laundering?
To hide who really owns the money, manage money through bank accounts, and mix illegal money with legal money.
How are offshore companies typically used in money laundering?
Offshore companies are used for hiding ownership and financial activities due to their secrecy and ease of remote management.
What are LLCs and their role in money laundering?
LLCs look like professional companies to banks but often hide who owns them, making tracing the real owner difficult.
Why are trusts challenging for money laundering investigations?
Trusts have rules hidden in complex documents, making it hard to see who benefits and how money moves.
Describe a loan back scheme.
Money is sent abroad, then loaned back to buy assets like real estate, making it look like a normal investment.
How do offshore entities complicate money laundering investigations?
They can quickly change who owns them or where they are when investigators start looking, making tracking hard.
How is real estate used in money laundering?
Money passes through multiple companies to buy properties, which then earn ‘clean’ money like rent.
What role do nominee services play in money laundering?
Nominees hide the criminal’s identity while managing business operations like opening bank accounts.
How do criminals avoid identity checks in offshore setups?
They use remote locations or dishonest lawyers to verify their fake identities, keeping their operations secret.
What is the function of TCSPs in money laundering?
TCSPs help set up and manage secretive companies and trusts, enhancing the secrecy of financial activities.
Why do money launderers use multiple tax havens?
Using several tax havens confuses the money trail, with different rules and cooperation levels complicating investigations.
What are the signs of money laundering involving complex corporate structures?
Look for unusual financial flows, secretive ownership structures, and the use of professional intermediaries to hide activities.
How do money launderers manipulate company structures to hide funds?
They create layers of companies that own each other, making it hard to trace money back to the criminal.
What tools help uncover money laundering in corporate networks?
Analytical tools like Excel and OpenCorporates organize and visualize financial connections, revealing suspicious patterns.
How does layering work in money laundering?
Layering involves moving money through various accounts or businesses to blur its illegal origin before using it.
