Domestic tax authorities, financial Intelligence units, bankruptcy trustees and banks rely on red flags to detect illicit assets, as mentioned by “Recognizing Hidden Assets, The Red Flags.” Recognizing Hidden Assets, The Red Flags notes that a broad range of litigants may uncover hidden assets by spotting the red flags. These red flags are listed at “Asset Search Indicia For Divorce, Debt Collection and Bankruptcy”, which I initially published during 2007:
Asset Search Indicia For Divorce,
Debt Collection and Bankruptcy
Money laundering indicia are sometimes used outside of the United States. For example, India’s Financial Intelligence Unit relies on “broad categories of reason for suspicion“; the Belgian Financial Intelligence Unit (“CTIF-CFI”) uses Money Laundering Indicators; the Swiss Federal Banking Commission has the Schedule: Indicators of Money Laundering ; and the Asia / Pacific Group on Money Laundering also uses such a list. Recognizing the following money laundering indicia may however, lead to the discovery of assets concealed in a divorce, commercial collection, bankruptcy or other legal case:
- Asset Protection Via Nevada, Wyoming or Delaware.
- Large Amounts Of Portable Valuable Commodities (Gold, Diamonds, etc.).
- False Invoicing In A Trade Or Business.
- Offshore Asset Protection Services.
- Foreign / Offshore Bank Accounts.
- Multiple Jurisdictions.
- Fraudulent Asset Transfers / Conveyances.
- Shell Companies.
- Sham Trusts.
- Nominees (i.e. Intermediaries).
- High-Risk Geographical Locations.
- Bearer Shares.
- Informal Banking Systems, (Hawala, Hui Kuan, etc.).
- Bulk-Cash Smuggling.
- Internet Or Other Gambling Activities.
- Structuring Bank Deposits,(a.k.a. “Smurfing”).
- Offshore Credit Cards.
- Misuse Of Businesses (i.e. Commingling Personal With Business Assets).
Copyright 2013 Fred L. Abrams