Category: Terms
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Day 277: Transshipment
#QuickbiteCompliance day 277 🚢 The Magic Trick Hiding Dirty Money: Transshipment! Imagine a magician making a toy disappear from one box… only for it to secretly appear in another box far away. That’s how transshipment works—goods move through hidden stops or switch ships mid-journey before reaching their real destination. But sneaky pirates (aka criminals) use…
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Day 276: Transparency International
#QuickbiteCompliance day 276 🚨 Corruption Isn’t Just Coins in a Piggy Bank—It’s a Global Crime Engine! Did you know? Bad actors turn dirty money into “clean” cash by hiding it behind fake companies, luxury homes 🏠, or even foreign passports. For example: – Shell Companies: Criminals use phantom firms to move illegal funds—like drug money—into…
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Day 275: Transliteration
#QuickbiteCompliance day 275 🚨 Hidden in Plain Sight: The “Alphabet Trick” Fueling Financial Crime! Imagine your name changing spelling every time you cross a border. “Mohammed” becomes “Muhamad,” “Muhammad,” or “Mehmet” 🌍➡️🇷🇺➡️🇨🇳. This isn’t magic—it’s #Transliteration (converting text between scripts, like Arabic to Cyrillic). While it helps global communication, criminals exploit it to hide dirty…
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Day 274: Transaction Monitoring and Filtering Programs
#QuickbiteCompliance day 274 🚨 Stop the Money Trail: How Criminals Exploit Banking Systems & How We Catch Them Imagine your bank account is a piggy bank. Now imagine bad guys trying to sneak dirty money into it, then move it around like a shell game until it looks clean. That’s financial crime. And Transaction Monitoring…
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Day 273: Trade Finance
The article discusses how fraudsters exploit Letters of Credit (LC) in trade fraud, using methods such as fake shipments and cloned documents. Notable scams resulted in significant financial losses for banks. To combat this, technology such as blockchain and collaborative databases is being utilized, promoting smarter, inclusive anti-fraud measures.
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Day 272: Toll Gates
Criminals exploit payment systems, likened to “toll gates,” by manipulating transaction information. Techniques include “smishing,” where fake texts trick users into revealing bank details, and “layering,” which disguises illicit cash movements. Enhanced regulatory technology aims to safeguard these payment channels by promoting transparency and collaboration among financial institutions to combat fraud effectively.
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Day 271: Tipping off
Tipping off in financial crime involves alerting suspects about investigations, allowing them to evade detection. Criminals exploit this by disappearing funds or altering identities. The consequences include hefty fines for banks and increased crime. Utilizing technology and training teams can prevent tipping off, fostering a safer financial environment.
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Day 270: Threshold Calibration
Criminals exploit banking thresholds to launder money by breaking deposits into smaller amounts to avoid detection. Banks face challenges balancing alert sensitivity to prevent false alarms while catching real crimes. Advanced calibration using AI and risk-based rules enhances these systems, helping banks adapt to evolving threats and protect communities effectively.
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Day 269: Third Line of Defense
Strong audits are crucial in preventing financial crimes at banks, acting as a third line of defense after frontline teams and compliance experts. Weak inspections lead to significant losses, as seen in cases like Entain and TD Bank. Enhancing training, testing controls, and utilizing technology can fortify audit effectiveness against criminals.
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Day 268: Testimony
Testimony in court can be manipulated by criminals to disguise financial crimes. They employ various tactics, such as paying corrupt experts, utilizing family members for cover-ups, or fabricating business profits. To combat this, technology like AI monitors can detect suspicious patterns, supporting justice by transforming testimony into a protective tool against crime.