Featured Case Studies

Transaction laundering

Transaction laundering is a catch-all term for a wide range of money laundering methodologies involving ecommerce sites.

Hawala

Hawala (Arabic for ‘transfer’ or ‘trust’), is an informal system of money transfer that predates the modern banking system by many centuries. It is defined by the Financial Action Task Force as an ‘alternative remittance system’ for transferring money from one location to another outside banking channels. Dating back to 8th Century Silk Road traders, or perhaps even earlier, it has had a significant influence on the development of modern financial systems, particularly on the legal principle of the ‘agent’.

Disguising the source of funds for an investment

As part of their recent, highly detailed investigation into Russian involvement in brutal deaths on British soil, BuzzFeed News described an interesting methodology for disguising the source of funds for investing in a legitimate venture.

At the end of January the UK’s Financial Conduct Authority announced its largest ever penalty for anti-money laundering failures. It fined Deutsche Bank £163 million ($204 million) for lacking ‘an adequate AML control framework’ between 2012 and 2015. US regulators levied an additional $425 million against the bank for the same issue.

Specifically, Deutsche is alleged to have facilitated $10 billion in Russian ‘mirror-trades’ which could have been used to launder money and evade Russian capital controls.

View

Transaction laundering is a catch-all term for a wide range of money laundering methodologies involving ecommerce sites.

View

Hawala (Arabic for ‘transfer’ or ‘trust’), is an informal system of money transfer that predates the modern banking system by many centuries. It is defined by the Financial Action Task Force as an ‘alternative remittance system’ for transferring money from one location to another outside banking channels. Dating back to 8th Century Silk Road traders, or perhaps even earlier, it has had a significant influence on the development of modern financial systems, particularly on the legal principle of the ‘agent’.

View

As part of their recent, highly detailed investigation into Russian involvement in brutal deaths on British soil, BuzzFeed News described an interesting methodology for disguising the source of funds for investing in a legitimate venture.

View

A graphic showing the AML fines levied against financial institutions around the world in the last 5 months.

View

Financial crime risk is generally thought of as being associated with banking and real estate, but no professional services firm is immune.

View

The ‘Russian Laundromat’ (a term coined by the team of journalists at the OCCRP who uncovered it) was a complicated scheme, run between 2010 and 2014, to launder up to $80 billion out of Russia. It was based on fictitious debts between companies in the jurisdictions to which criminals and corrupt Russian officials wanted to send their money. The debts between these companies were authenticated by Moldovan judges, such that all transfers were backed by a European court order and appeared exceptionally ‘clean’.

View

An investment fund can be utilised by those seeking to launder money. Investment funds are particularly suitable for money laundering where a large sum of illicit money is already within the financial system.

View

The attached case study and infographic explains the abuse of syndicated loans for money laundering purposes.

View

Case Study and Infographic analysing the abuse of Aircraft and Ship Finance for money laundering purposes.

View
Must Read

The perfect AML programme: A ten point guide

Does the ‘perfect’ path to anti-money laundering (AML) exist? The quest for the perfect plan can be traced back to criminals causing immeasurable damage for many economies through money laundering. In response, governments are continuously trying to fight back, issuing a raft of rules and penalties for financial institution (FIs)… Read More

How Rabobank’s compliance unit ended up in hot soup again

Anti-money laundering expert and former undercover agent Robert Mazur has picked out some interesting aspects of the worrisome role compliance officers played in the Rabobank money laundering scandal in the US, which resulted in the bank being fined hundreds of millions of dollars and its top… Read More