Criminal Capital: How the Finance Industry Facilitates Crime
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Criminal Capital is an engaging but authoritative account of how financial structures and products can and are being used to evade proper scrutiny and enable criminal activity and what can be done about it. Based on the analysis of the financial methods that are frequently used by criminals, it deals with the widespread abuse of financial systems.
services but a selection of those that I have most commonly witnessed during the course of investigations both on and offshore. The inclusion of each of the product and service types that follow should not be misinterpreted as suggesting that they are illegal or inherently toxic. The opposite is true. They are all frequently used for legitimate commercial objectives. Their inclusion in this chapter is warranted because of their 32 CRIMINAL CAPITAL susceptibility to abuse by criminals who are
undisclosed parties. Foreign students who ‘sell’ their UK bank accounts after they return home having ended their studies do so by handing over their ATM cards and online account log in details to the highest bidders thus enabling potential terrorists to access the global financial system with ease. Some bank accounts come with optional extras including hold or no mail agreements. A hold mail service obliges the bank not to send correspondence to the customer but instead to hold it for
collection. A no mail service obliges the bank not to produce statements. Such services could be of value to a genuinely paranoid customer but they are clearly of enormous value to criminals. A person wishing to create disconnects may not wish to take the risk of mail being intercepted by law enforcement, or indeed anyone else, and being found to be in receipt of mail from overseas banks. An alternative means of achieving the same objective involves the use of numbered accounts routinely offered
laundering funds: a criminal may acquire penny stocks with the proceeds of crime, then sell the stock once it has been listed on an exchange, giving the criminal’s funds a newly acquired air of legitimacy. 2. Bearer securities: Bearer securities pose a threat to the financial system due to their anonymity and ease of transfer. The proceeds of crime can be introduced into the financial system via the acquisition of these types of securities and may be transferred MONEY LAUNDERING MODELS 49 to
false stamps that would enable Cuban banks to forge US travellers cheques, and advice on concealment of dollar transactions. Introducing a new entry to the legal lexicon, ING Group Legal department even catalogued the actions of one ING branch purposely deceiving a US correspondent bank as a ‘little white lie’. Threats were made to employees who refused to participate in the breach actions. Clearly, none of these actions could be called accidental or inadvertent. Also in 2012, UK bank Standard