Author: Tommy Hartono
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Day 266: Tax Haven
Tax havens, while legal for tax avoidance, are exploited by criminals for money laundering through ghost companies, fraudulent trade invoices, and anonymous trusts. This not only deprives governments of tax revenue, impacting schools and hospitals, but also enables war criminals to hide illicit funds. New regulations aim to improve transparency and combat financial crime.
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Day 265: Targeted Sanctions
Targeted sanctions aim to punish criminals without impacting innocent citizens, much like banning a single cheating student. However, criminals evade these sanctions through ghost companies, family fronts, and cryptocurrency. Utilizing AI, global cooperation, and public shaming, efforts are made to combat financial crime and ensure accountability.
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Day 264: Target Match
A Target Match identifies financial criminals attempting to infiltrate the system by matching them against global watchlists. Criminals use tactics like smurfing, shell companies, and name variations to evade detection. Effective screening technology, including AI, can reduce false alarms and improve compliance in fighting money laundering and financial crime.
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Day 263: SWIFT Message
Criminals exploit SWIFT messaging to launder money, using tricks like fake messages and shell companies. Notable incidents include the Bangladesh Bank Heist, where $81 million was stolen. Many banks overlook suspicious activities. Advanced technologies like ISO 20022 and machine learning are emerging to enhance fraud detection and compliance efforts.
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Day 262: Suspicious Transaction Report
The post discusses tactics used by criminals to launder money, such as fake businesses and structuring deposits. It highlights the importance of Suspicious Transaction Reports (STRs) in detecting these activities. Through advanced technology and collaboration, financial institutions can effectively combat money laundering and protect assets. STRs empower banks to act as safeguards.
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Day 261: Suspicious Activity Report
Banks combat financial crime by identifying tactics used by criminals, such as structuring large sums into smaller deposits, fake businesses, money laundering, and identity theft. In 2023, banks filed 4.6 million Suspicious Activity Reports, utilizing advanced technology to efficiently analyze transactions and prevent illegal activities while ensuring compliance.
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Day 259: Subpoena
Subpoenas serve as crucial legal tools in uncovering financial crimes, yet criminals exploit them to hinder investigations. Techniques like “structuring,” shell companies, and anonymous crypto wallets complicate law enforcement efforts. However, advancements in technology, including AI and open-source tools, are enhancing capabilities to combat these tactics effectively.
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Day 258: Structuring
Criminals use “Structuring” or “Smurfing” to launder money by breaking large amounts into smaller deposits to avoid detection. For instance, a drug dealer deposits $50,000 as five $9,999 transactions. This technique aids crimes and risks financial integrity. However, technology like Mulai Console is enhancing banks’ ability to combat such activities.
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Day 257: Stripping
The “Invisible Money” Trick, known as “Stripping,” allows criminals to obscure the source of illicit funds by altering transaction details. This technique facilitates money laundering, affecting banks globally and increasing costs for consumers. Innovative technologies and collaborative regulations are emerging to combat these practices and enhance financial transparency.
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Day 256: String Matching
Financial criminals utilize name, number, and code alterations to evade detection, leading to challenges for traditional security systems. Advanced methods like fuzzy matching and analyzing behavioral data enhance fraud detection. By adopting inclusive technologies and shared innovations, we adapt to evolving tactics and improve our defenses against financial crime.