Spotting the red flags/the money laundering indicators is one way to search for hidden assets. The red flags may help you sniff out money or other assets concealed in matters ranging from a high net worth divorce to a securities fraud. Financial Intelligence Units part of the Egmont Group employ red flags to search for money hidden across the globe by terrorist financiers; narco-traffickers; kleptocrats & others. As more fully set forth here, red flags include:¹
- Large-scale cash transactions.
- Atypical or uneconomical fund transfer to or from foreign jurisdiction.
- Unusual business activity or transaction.
- Large and/or rapid movements of funds.
- Unrealistic wealth compared to client profile.
- Defensive stance to questioning.
The case study below, (sanitized for privacy reasons), is also from the Egmont Group.² It is about a homicide; public corruption; fraud; & the laundering of $9.5 million dollars in “Economy F.” The money was washed through a corporate bank account; lawyers’ trust accounts; & bank accounts belonging to money mules. The Financial Intelligence Unit (“FIU”) involved in the case analyzed Suspicious Transaction Reports (“STRs”); issued orders freezing monies; etc.