How to prevent the use of financial institutions for money laundering
Fake commercial paper:
The money launderer first deposits the criminal proceeds in the bank of country A and uses them to purchase letters of credit. The letter of credit was used for a fictitious import transaction of goods from country B to country A, and was then cashed at a bank in country B using a forged bill of lading. Sometimes criminals also use some real business transactions to conceal or cover up criminal proceeds, but make a fuss about the quantity and price.
Money laundering through the securities and insurance industries:
Some money launderers use international securities markets to launder money. In the insurance market, some money launderers often purchase high-value insurance and then redeem it at a low price at a discount. The difference in price is the money "purified" by the insurance company.
Opening accounts with checks for money laundering:
Investigations on money laundering activities in many countries have shown that one of the methods of money laundering is to use Bills issued on clearing exchanges, this method is widely used in money laundering activities around the world.
In addition to the above, money launderers will also use banks International transfer of deposits for money laundering. Or use illegal funds as collateral to obtain perfectly legal bank loans, and then use these loans to purchase real estate, businesses or other assets. Then there is the use of futures and options to launder money. The use of financial derivatives in the international financial market and money laundering through complex financial transactions is one of the important ways of transnational money laundering.
What are the main behavioral methods of money laundering
1. Provide a capital account. This is the first step in the circulation of stolen money in the financial field. The holder of the stolen money first opens an account in a financial institution, and then remits the stolen money overseas or issues bills for use.
2. Assist in converting property into cash, finance Bills and securities. As long as the perpetrator knows that the property is the proceeds of the above-mentioned crimes, he or she trades with the property holder through pledge, mortgage or sale, and exchanges the property for cash or financial instruments, this crime can be committed.
3. Assist funds through transfer or other settlement methods transfer. That is to say, illegal funds will beMixed with legal cash, the funds appear in a legal form through bank checks or other methods, so that they can be used to start companies and enterprises, thereby making illegal funds liquid and making profits.
4. Assist in remitting funds overseas.
5. Use other methods to conceal or conceal criminal proceeds and the source and nature of its income. This mainly refers to: hiding criminal proceeds in various means of transportation, taking them out of the country, and then converting them into foreign currency or purchasing property, or depositing them in foreign banks in the names of foreign relatives, and then returning to the country; opening hotels, bathing, singing and dancing Service industries such as bureaus and industries that use a large amount of cash on a daily basis mix illegally obtained income into legal income; use cash to purchase real estate and then sell it; use "high" prices to purchase certain inferior products or even scrap materials, etc. Money is sent to accomplices in other places or countries in order to transfer the money, legalize the stolen money, etc.
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