#QuickBiteCompliance Day 75
How Third-Party Databases Help Fight Financial Crime—and How Bad Guys Try to Beat Them
Imagine you’re playing a detective game. You need to find clues about people or companies to see if they are honest or sneaky. Third-party databases are like big libraries full of clues! They include information from places like:
Rating agencies (like report cards for companies)
Stock exchanges (where companies sell pieces of themselves)
Legal databases (records of who’s followed or broken the rules)
These tools help us spot bad guys who want to steal money or hide where it’s coming from. But here’s the twist—the bad guys are smart, too.
How Bad Guys Use These Databases
1️⃣ Fake Identities: They might create fake companies or use stolen identities to show up as “clean” in these databases.
2️⃣ Hiding Behind Layers: They use shell companies (empty companies that look real) to confuse investigators.
3️⃣ Manipulating Data: Some even pay others to change or fake information in these databases.
Why We Need to Be Careful
Even though these databases are super helpful, we can’t always trust them 100%. It’s like checking two or three sources in a treasure hunt to make sure the map is real. Investigators use these clues but always double-check before making decisions.
Let’s stay sharp and keep learning to outsmart the bad guys!
#FinancialCrime #AntiMoneyLaundering #ThirdPartyData #DueDiligence #FraudPrevention #TransparencyMatters #Compliance #InclusiveRegtech #OpenSourceAML
Source: https://www.acams.org/en/resources/aml-glossary-of-terms
