#QuickBiteCompliance Day 84
How “Bad Guys” Use Trickery to Dodge Sanctions: Let’s Break It Down!
Imagine you’re playing a game where you’re not allowed to have more than 50 marbles. If you do, you’re out of the game. But instead of playing fair, you give some of your marbles to your friends and ask them to hide them for you. Now it looks like you have less than 50 marbles, but in reality, you still control all of them. Sneaky, right?
This is exactly what some bad guys do in the real world to get around sanctions. Sanctions are rules that say certain people, companies, or even countries can’t trade or do business because they’ve done something wrong.
But here’s the trick they use:
1️⃣ They break their businesses into smaller pieces and hide them in different countries.
2️⃣ They make it look like they own only a tiny part of the business – under the “sanction limit” – so no one suspects them.
3️⃣ By doing this, they keep making money and trading, even though the rules say they shouldn’t.
For example:
A sanctioned country might split its oil company into smaller companies and register them in different countries. On paper, none of them seem connected, but behind the scenes, they’re all working together.
A sanctioned individual could secretly own 49% of a company and have a “friend” own the other 51%, even though the friend is just following their orders.
This makes it really hard for banks and businesses to catch them because everything looks legal on the surface.
We need smarter tools, better rules, and sharp minds to stop these tricks and make sure sanctions work the way they’re supposed to.
🚨 Let’s shine a light on these practices and work together to fight financial crime!
#AntiFinancialCrime #SanctionsEvasion #FinancialIntegrity #AML #SanctionsCompliance #TransparencyMatters #InclusiveRegtech #OpenSourceAML
Source: https://www.acams.org/en/resources/aml-glossary-of-terms
