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CONFESSIONS OF A
MONEY LAUNDERER by Kenneth Rijock
MONEY LAUNDERER by Kenneth Rijock
Financial Crime Consultant, for World-Check
Confession of a Money Launderer - Part 79
17 November 2008
When I worked as a compliance officer, my short list of "red flags" consisted of the techniques that I personally used, or had observed other money launderers employing with a high degree of success. It was, at first, quite strange to see those tricks and clever gambits from the other side of the playing field, so to speak. I know that the financial criminals that I identified, and prevented from attaining client status probably never realised that a person who was formerly one of their own was reviewing their techniques, simply because I never considered it when I was working in that illicit industry. Whilst I never underestimated the abilities of compliance officers as a practising money launderer, I never conceived of the concept of a former laundryman working on the side of the banks. if I had known such a thing existed, I would have been forced to make major modifications in my strategies and tactics, abandoning the more simplistic tricks in favour of new methods. Not just old wine in new bottles, but totally new tradecraft.
What was I looking for as a compliance officer? Here are a few of the most popular items for the laundryman's bag of tricks that I encountered:
Next week: more tips, tricks and games they play.
- Intentional misspelling of the corporate name. When you see this more than once in company filing documents, it is not secretarial error, but a nice way to play the laundering game. Many times, an inattentive bank staff officer will assume it is a typo; Not so, it often allows one to form a corporation with a deceptively similar name to that of an established legitimate company of substance. Some officers will automatically correct the perceived mistake. Remember, the more confusion, the harder it is for the targeted bank to learn the truth. I saw highly educated businessmen deliberately misplacing a letter or two. The beauty of this technique is that you might even be able to engage in corporate identity theft under the right circumstances, and obtain credit, never to repay the debt. The misspelling ploy is even sometimes intended to give the compliance officer the impression that the company is composed of bumbling idiots that make mistakes. Will you not think that apparently inept businessmen are harmless?
- The use of a Power of Attorney (known as a Poder, in Spanish) from a corporation, given to an agent or attorney. The attorney-in-fact then executes all the documents, and you never really learn whether the stated shareholders are fronts, or even really exist. The problem is theat the person holding the document has total power, whilst not in the position and responsibility of director or shareholder status. In truth and in fact, a company could be quietly set up, and prominent citizens named as shareholders, without their knowledge and permission. The entire thing could be a well-built sham, created to leave no trails after the crimes are committed, with no consent or ownership status of the prominent directors/shareholders.
- The appearance of what appears to be a wholly-owned subsidiary of a substantial foreign company as a new client. The customer relationship officers, seing huge commissions, raises, or bonuses, often fail to check out whether there actually is joint ownership. You do not confuse the public if you are legitimate, but if you are dodgy, you pick a company that does not do business in a certain jurisdiction, and dive right in with your scam about the firm expanding into a heretofore virgin region. Query: Does the legitimate firms's website not mention the new "subsidiary?" If so, you may be looking at fraudsters, not mere money launderers.
- One of the shareholders of a company is itself a corporation, and those corporate documents have not been produced, due to some excuse or another. You will encounter a delaying technique when you insist on the second company 's details, and you are often told that they will be delivered right after the account has been opened. Nothing could be further from the truth. If you do not get verifiable, and complete, company documents from the corporation that owns the first company, pass on the account.
- Spelling differences with the names of the shareholders/officers/directors, from one document to another, Remember, financial criminals like to alter one letter of their name from time to time, to frustrate law enforcement computerised searches.
Next week: more tips, tricks and games they play.
The facts and opinions stated in this article are those of the author and not those of World-Check. World-Check does not warrant the accuracy of any facts and opinions stated in this article, does not endorse them, and accepts no responsibility for them.
Read more in this exciting series
8 March 2010
8 February 2010
24 January 2010
6 December 2009
27 September 2009
9 August 2009
3 August 2009
30 March 2009
9 March 2009
2 March 2009
22 February 2009
18 February 2009
26 January 2009
18 January 2009
11 January 2009
5 January 2009
29 November 2008
24 November 2008
17 November 2008
8 November 2008
3 November 2008
27 October 2008
20 October 2008
13 October 2008
4 October 2008
28 September 2008
20 September 2008
15 September 2008
15 June 2008
8 June 2008
1 June 2008
26 May 2008
19 May 2008
12 May 2008
4 May 2008
27 April 2008
20 April 2008
13 April 2008
31 March 2008
18 March 2008
4 March 2008
25 February 2008
16 February 2008
10 February 2008
3 February 2008
27 January 2008
20 January 2008
14 January 2008
6 January 2008
16 December 2007
9 December 2007
1 December 2007
25 November 2007
18 November 2007
11 November 2007
3 November 2007
27 October 2007
21 October 2007
14 October 2007
7 October 2007
1 October 2007
23 September 2007
16 September 2007
3 June 2007
27 May 2007
21 May 2007
6 May 2007
30 April 2007
22 April 2007
15 April 2007
8 April 2007
2 April 2007
24 March 2007
19 March 2007
12 March 2007
5 March 2007
25 February 2007
19 February 2007
12 February 2007
4 February 2007
28 January 2007
22 January 2007
15 January 2007
7 January 2007
2 January 2007
16 December 2006
10 December 2006
3 December 2006
27 November 2006
19 November 2006
11 November 2006
5 November 2006
29 October 2006
22 October 2006
16 October 2006
9 October 2006
2 October 2006
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