Hawala dealer used multiple trade-based financial crimes in money laundering schemes

An Indian money exchange operator or hawala dealer is suspected of employing multiple trade-based money laundering (TBML) techniques in a string of dubious transactions.

Naresh Jain allegedly arranged transactions maybe amounting to billions of US dollars using hundreds of shell companies, produced reams of false documents and operated a maze of bank accounts.

Complex web

Jain allegedly used a network of 554 shell companies in what some reports suggest may be one of India’s biggest ever TBML cases.

Some large corporates and foreign exchange dealers are also reportedly under investigation for conspiring with Jain in his activities according to local media.

False documents

India’s Enforcement Directorate says the conspirators participated in illegal foreign exchange transactions by employing false documents, including identity cards, birth and education certificates, voter identification papers and signatures.

These were forged and fabricated to incorporate entities and operate bank accounts as well as to facilitate bogus, over-invoiced, under-invoiced import and export transactions.

Proceeds from these transactions were subsequently rotated through a web of shell companies and bank accounts.



Categories: Trade Based Financial crimes News

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