Case Studies
The following cases have principally been drawn from the Typologies Reports published by the FATF during the period 1997 - 2004. These are available from the FATF website www.fatf-gafi.org. Additional cases published by the Egmont Group of Financial Intelligence Units can be obtained from the SOCA website www.soca.gov.uk publications.
Exchange transaction relates to laundered drug money and diamond smuggling
Money transfers
Failure of due diligence aids a potentially corrupt PEP
Private banker helps conceal suspects illegal proceeds
Correspondent banking, wire transfers facilitate transactions by shell companies
Charity used to finance terrorism
High account turnover indicates fraud allegedly used to finance terrorist organisation
Front for individual with suspected terrorist links revealed by suspicious transaction report
Simple transactions found to be suspect
Terrorists collect funds from lawful sources
Lawyers, real estate
Lawyers
Accounting firm
Laundering the proceeds of fraud through the diamond market
Silver and gold smuggling
Front companies
Front companies, insurance and bureaux de change
Shell companies and Corporate Service Providers
Shell corporations
Company front - false loans scheme
Criminal funds laundered through payment of insurance premiums
Insurance policies and real estate
Investment of fraudulent funds in the securities market
Criminal cash proceeds placed through margin trading
The derivatives market: a typology
Underground banking activity revealed through large turnover in small business
Alternative remittance systems - supported by import/export activity
Alternative remittance systems laundering cash from the sale of narcotics
Alternative remittance systems use of retail outlets
Bureaux de change
Cross border cash
Payments structured to avoid detection
Use of a bureau de change and bank accounts under false names
Laundering through temporary bank accounts Facts
Use of bank safety deposit boxes
Launderers recruit individuals for the use of their bank account
Money laundering/terrorist financing activities
The techniques used by money launderers constantly evolve to match the sources and volume of funds to be laundered, and the legislative/regulatory/law enforcement environment of the market place in which the money launderers operate. read more