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Searching For Assets Via Terrorist Financing Red Flags

Posted in Asset Search/Fraud Investigation, Financial Institutions, Money Laundering

Terrorist Financing, Money Laundering & Financial Intelligence Units” and “Transnationally Tracking The Assets Of Terrorists” discusses the Egmont Group.  The Financial Intelligence Units of the Egmont Group search for assets secreted by terrorist financiers and money launderers.

Financial Intelligence Units search for these illicit assets by looking for special indicators.  The Egmont Group’s report “FIUs And Terrorist Financing Analysis” lists the indicators or “red flags” associated with terrorist financing.  Spotting terrorist financing red flags could conceivably lead to the detection of assets hidden during a variety of schemes.

Some of the red flags detailed by the Egmont Group’s report are:

• The use of funds by the non-profit organization is not consistent with the purpose for which it was established.

• The transaction is not economically justified considering the account holder’s business or profession.

• A series of complicated transfers of funds from one person to another as a means to hide the source and intended use of the funds.

• Transactions which are inconsistent with the account’s normal activity.

• Deposits were structured below the reporting requirements to avoid detection.

• Multiple cash deposits and withdrawals with suspicious references.

• Frequent domestic and international ATM activity.

• No business rationale or economic justification for the transaction.

• Unusual cash activity in foreign bank accounts.

• Multiple  cash  deposits  in  small  amounts  in  an  account  followed  by  a large  wire transfer to another country.

• Use of multiple, foreign bank accounts.  (FIU’s And Terrorist Financing Analysis¹).

¹FIUs And Terrorist Financing Analysis, courtesy of the Egmont Group.

Copyright 2012 Fred L. Abrams