#QuickBiteCompliance Day 153
One Person, Two Passports: How Criminals Exploit Citizenship
Imagine your friend has two library cards—one for each of two different cities. If one library bans them for breaking the rules, they can still borrow books using the other card.
This is how criminals misuse jurisdiction of citizenship to escape financial crime controls. Some people hold passports from multiple countries (dual citizenship), which can be legal. But bad actors use this to hide their tracks.
How Do Criminals Take Advantage?
🚨 Opening Multiple Bank Accounts – A fraudster with two passports can open accounts in different countries, making it harder to track their money.
🚨 Sanctions Evasion – If one country is sanctioned, a criminal might use their second citizenship to keep doing business.
🚨 Buying ‘Golden Passports’ – Some criminals pay for citizenship in countries with weak regulations, making it easier to launder money.
Why This Matters
Banks and financial institutions need to verify a person’s citizenship to ensure they’re not dealing with bad actors. If someone hides their real identity or country connections, they might be funding illegal activities or dodging sanctions.
How We Stop It
Using smart technology, investigators track suspicious activity and flag unusual citizenship patterns. Inclusive Regtech and Open Source AML solutions—like those from Mulai Console—help identify risks and close loopholes.
Transparency matters. Without strong controls, criminals could keep playing the system, while the rest of us follow the rules.
🔗 Learn more: https://www.acams.org/en/resources/aml-glossary-of-terms
#InclusiveRegtech #OpenSourceAML #100HariNulis #AML #FinancialCrime #Compliance