Transnational Crime, International Organization Flashcards
Conversion or transfer of property knowing that such property is derived from a criminal offense, for the purpose of concealing or disguising the illicit origin or the property, or assisting any person who is involved in the commission of such offense, or offenses, to evade legal consequences of his action (UN definition).
Money Laundering
Often known as smurfing, this is a method of placement whereby cash is broken into smaller deposits of money, used to defeat suspicion of money laundering and to avoid anti-money laundering reporting requirements.
Structuring
This involves physically smuggling cash to another jurisdiction and depositing it in a financial institution, such as an offshore bank, with greater bank secrecy or less rigorous money laundering enforcement.
Bulk Cash
In this method, a business typically expected to receive a large proportion of its revenue as cash uses its accounts to deposit criminally derived cash. Such enterprises often operate openly and in doing so generate cash revenue from incidental legitimate business in addition to the illicit cash in such cases the business will usually claim all cash received as legitimate earnings.
Cash-Intensive Businesses
This involves under or overvaluing invoices to disguise the movement of money.
Trade-based Laundering
Trusts and shell companies disguise the true owner of money. Trusts and corporate vehicles, depending on the jurisdiction, need not disclose their true, beneficial, owner.
Shell Companies and Trust
refers to a person acting as the fictitious owner rather a business entity.
Rathole
Money is deposited in a controlled foreign corporation offshore, preferably in a tax haven where minimal records are kept, and then shipped back as foreign direct investment, exempt from taxation.
Round-Tripping
Money launderers or criminals buy a controlling interest in a bank, preferably in a jurisdiction with weak money laundering controls, and then move money through the bank without scrutiny.
Bank Capture
In this method, an individual walks into a casino and buys chips with illicit cash. The individual will then play for a relatively short time. When the person cashes in the chips, they will expect to take payment in a check, or at least get a receipt so they can claim the proceeds as gambling winnings.
Casinos
Money is spent on gambling, preferably on higher odds. One way to minimize risk with this method is to bet on every possible outcome of some event where there are many possible outcomes and no outcome(s) have short odds the bettor will lose only the vigorous and will have a “winning” bet(s) that can be shown as they so.
Other gambling
Someone purchases real estate with illegal proceeds and then sells the property. To outsiders, the proceeds from the sale look like legitimate income. Alternatively, the price of the property is manipulated: the seller agrees to a contract that under represents the value of the property, and receives criminal proceeds to make up the difference.
Real State
A company may have unregistered employees without a written contract and pay them cash salaries. Dirty money might be used to pay them.
Black Salaries
The recruitment, transportation, transfer, harboring or receipt of persons, by means of the threat or use of force or other forms of coercion, of abduction, of fraud, of deception, of the abuse of power or of a position of vulnerability or of the giving or receiving of payments or benefits to achieve the consent of a person having control over another person, for the purpose of exploitation.”
Human Trafficking
is defined as a crime where a computer is the object of the crime or is used as a tool to commit an offense. A cybercriminal may use a device to access a user’s personal information, confidential business information, government information, or disable a device. It is also a cybercrime to sell or elicit the above information online.
Cybercrime
