Illegal Money Laundering Methods
Governments, NGOs, and megacorporations can engage in illegal money laundering through various methods. For governments, money laundering often involves using state resources to disguise the origins of illicit funds. This can include funneling money through state-owned enterprises or using public funds to mask the movement of illegal proceeds.
NGOs are susceptible to money laundering due to their often opaque financial structures and the ease of transferring funds across borders. Managers of NGOs can exploit these weaknesses by diverting funds into personal accounts or using NGO income to purchase real estate or cover living expenses, as documented in a report by the Anti-Money Laundering Authority in Greece.
Megacorporations can launder money by integrating illicit funds into their legitimate business operations. This can be achieved through complex financial transactions, the use of shell companies, or by moving funds through multiple accounts to obscure their origins. Additionally, they may exploit loopholes in international financial regulations to move money across borders without detection.
Governments and financial institutions combat money laundering with anti-money laundering (AML) policies, which include customer due diligence (CDD) measures and transaction monitoring to detect and report suspicious activity.
The Financial Action Task Force (FATF) is an intergovernmental body that devises and promotes the adoption of international standards to prevent money laundering. These standards cover customer due diligence, transaction monitoring, and reporting of suspicious activity, aiming to reduce the ease of hiding criminal profits.
In summary, while governments, NGOs, and megacorporations can use different methods to launder money, regulatory bodies and financial institutions implement stringent measures to detect and prevent such activities.
Simplified synopsis.
Account numbers matter.
Q team has it all.
Time is running out.
also, hat tip to icij!