#QuickBiteCompliance Day 151
The Disappearing Act: How Isolation Companies Help Criminals Hide
Imagine your friend is banned from buying candy at the store. But they really want chocolate. So, they give money to another kid—someone the store doesn’t suspect—to buy the candy for them.
This is exactly how isolation companies work in financial crime. When a business or person is banned (sanctioned) from doing business, they use an isolation company to hide their involvement.
How Do Criminals Use Isolation Companies?
🚨 Hiding True Owners – A sanctioned company secretly controls another business, making it look legitimate.
🚨 Breaking the Trail – Money moves through layers of companies, making it hard to track the real source.
🚨 Trading on Behalf of Others – A company that isn’t sanctioned buys goods for a banned entity, keeping their name off records.
The Real-World Impact
Bad actors use isolation companies to buy weapons, fund illegal activities, or move dirty money across borders—all while staying hidden.
Fighting Back with Smarter Tools
Investigators track patterns, check ownership records, and use technology to uncover hidden connections. Inclusive Regtech and Open Source AML solutions—like those from Mulai Console—help detect these tricks faster, protecting businesses and people from unknowingly helping bad actors.
Sanctions exist for a reason. Without strong monitoring, criminals would continue their disappearing act, putting the global financial system at risk.
🔗 Learn more: https://www.acams.org/en/resources/aml-glossary-of-terms
#InclusiveRegtech #OpenSourceAML #100HariNulis #AML #FinancialCrime #Compliance
