Several case studies involving trade-based financial crime feature in an extensive report published by the Cayman Islands Anti-Money Laundering Steering Group (AMLSG).

Money Laundering Typologies and Trends is a compilation of actual cases from across the world in which Cayman entities were involved as legitimate service providers.

Scope

The cases cited in the report involve trade, real estate, non-profit organisations, corporate services and tax evasion.

The publication is aimed primarily at financial institutions as well as Cayman’s designated non-financial businesses and professions, which include dealers in precious metals and stones, real estate dealers and accountants.

Terrorist financing

The publication points out that terrorists and terrorist groups use a wide variety of money laundering typologies, including the movement of goods through the trade system.

One of the case studies looks at illicit petroleum dealings with the so called Islamic State or Daesh.

Proliferation financing

Trade-related transactions are potentially highly indicative of proliferation financing the report says.

A case study describing how trade in oil and coal was used to facilitate illicit trade with North Korea is provided.

The report makes the point that most states, as well as banks, other financial institutions and designated non-financial businesses and individuals are unclear about what constitutes proliferation financing and how to recognise it.

The AMLSG study, Money Laundering Typologies and Trends, can be found here.

Categories: Trade Based Financial crimes News