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Money Laundering and Terrorism Financing Methods

Money Laundering and Terrorism Financing Methods. Introduction - Money Laundering - Switzerland. Art. 305 bis Swiss Criminal Code: Money Laundering

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Money Laundering and Terrorism Financing Methods

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  1. Money Laundering and Terrorism Financing Methods

  2. Introduction - Money Laundering - Switzerland • Art. 305bis Swiss Criminal Code: Money Laundering • 1. Any person who carries out an act that aims to frustrate the identification of the origin, the tracing, or the forfeiture of assets which he knows or must assume originate from a felony or aggravated tax misdemeanour is liable to a custodial sentence not exceeding three years or to a monetary penalty. • Art. 260quinquies Swiss Criminal Code: Financing terrorism • 1. Any person who collects or provides funds with a view to financing a violent crime that is intended to intimidate the public or to coerce a state or international organisation into carrying out or not carrying out an act is liable to a custodial sentence not exceeding five years or to a monetary penalty. RA Dr. iur. Dr. rer. pol. Fabian Teichmann

  3. Agenda • Gold • Jewellery • Raw Diamonds • Antiquities • Art • Consulting Firms • Mergers & Acquisitions • Dubai • Deposit Boxes • Cash • Currency Exchange Offices • Real Estate • References RA Dr. iur. Dr. rer. pol. Fabian Teichmann

  4. Consulting Firms RA Dr. iur. Dr. rer. pol. Fabian Teichmann

  5. Consulting Firms - General Suitability • Layering /integration • Avoid regulated sectors, such as asset management • Not subject to any controls • Pricing and performance are rather subjective and difficult to measure RA Dr. iur. Dr. rer. pol. Fabian Teichmann

  6. Consulting Firms –Concrete Steps • Hire a nominee director to found a share company • i.e. in Switzerland with subsidiaries abroad • Offer consulting services throughout the world • Professional website and a prestigious business address • Retain a few genuine consultants • Provide some consulting services to existing companies • Increase the business’s plausibility RA Dr. iur. Dr. rer. pol. Fabian Teichmann

  7. Consulting Firms - Resources • Nominee directors RA Dr. iur. Dr. rer. pol. Fabian Teichmann

  8. Consulting Firms – Detection Risks • Avoid suspicion by keeping illicitly gained assets in an overseas bank account • Banks’ transaction analyses • Authorities likely to become suspicious if the company has high revenues and very low expenses RA Dr. iur. Dr. rer. pol. Fabian Teichmann

  9. Dubai RA Dr. iur. Dr. rer. pol. Fabian Teichmann

  10. Dubai – General Suitability • Placement/layering/integration • Cash-intense city • Offshore zones • Well connected to the rest of the world • Free trade zones in the United Arab Emirates (UAE) RA Dr. iur. Dr. rer. pol. Fabian Teichmann

  11. Dubai –Concrete Steps • Found a company in a UAE free trade zone • Use nominee directors • Open a bank account in the company’s name • Complex transaction details • Be prepared to provide contracts and plausible explanations RA Dr. iur. Dr. rer. pol. Fabian Teichmann

  12. Dubai - Resources • Discreet banks which offer minimal cooperation to authorities • Incompetent or corrupt compliance departments RA Dr. iur. Dr. rer. pol. Fabian Teichmann

  13. Dubai- Detection Risks • Bank transaction analyses • Inquiries by correspondent banks • Whistleblowers RA Dr. iur. Dr. rer. pol. Fabian Teichmann

  14. Deposit Boxes RA Dr. iur. Dr. rer. pol. Fabian Teichmann

  15. Deposit Boxes – General Suitability • Placement • Sporadic or smaller stream of illicitly gained assets • Secure • Contents remain secret RA Dr. iur. Dr. rer. pol. Fabian Teichmann

  16. Deposit Boxes –Concrete Steps • Private deposit box companies are not required to identify depositors • By passing the key to another criminal, the assets can be transferred without leaving the deposit box RA Dr. iur. Dr. rer. pol. Fabian Teichmann

  17. Deposit Boxes - Resources • Special resources are not required • Obscure the origin of assets RA Dr. iur. Dr. rer. pol. Fabian Teichmann

  18. Deposit Boxes – Detection Risks • House Searches • Inflation RA Dr. iur. Dr. rer. pol. Fabian Teichmann

  19. Real Estate RA Dr. iur. Dr. rer. pol. Fabian Teichmann

  20. Real Estate - General Suitability • Placement/layering • Multiple opportunities for money laundering RA Dr. iur. Dr. rer. pol. Fabian Teichmann

  21. Real Estate –Concrete Steps • Use companies with nominee directors • buy problematic real estate in big cities • properties needing renovation • Companies can be financed by other offshore firms • Portion of the price can be paid with illicitly gained cash • Leads to tax benefits for both the buyer and seller • Important to maintain plausibility • Ensure that a substantial portion the purchase price is paid with clean assets • Renovations can be a tool for money laundering • Actually or fictitiously rent out the properties RA Dr. iur. Dr. rer. pol. Fabian Teichmann

  22. Real Estate - Resources • Properties needing renovation • Selling parties • Renovation firms eager to accept cash payments RA Dr. iur. Dr. rer. pol. Fabian Teichmann

  23. Real Estate – Detection Risks • Might attract the attention of tax departments or public notaries • High-profile deals may attract attention through media coverage RA Dr. iur. Dr. rer. pol. Fabian Teichmann

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