#QuickBiteCompliance Day 126
The Power of “Freeze” in the Fight Against Financial Crime
Imagine you’re playing a game of tag, and right before someone escapes, you yell, “Freeze!” They must stop in their tracks. In the world of financial crime, authorities use the same idea to stop bad guys from moving stolen money or funding illegal activities.
A freeze means that money, bank accounts, or assets can’t be used, withdrawn, or moved—but they still belong to their original owner. Courts often use freezing orders to prevent criminals from hiding or spending their illicit funds before an investigation is complete.
How Do Criminals Try to Outsmart Freezes?
Bad actors are always looking for loopholes. Here are a few tricks they use:
🔹 Layering funds through networks – Criminals move money across different accounts, countries, or even in cryptocurrencies before authorities can detect and freeze them.
🔹 Using “clean” third parties – They transfer assets to seemingly legitimate businesses or individuals so that the freeze doesn’t apply to them directly.
🔹 Timing withdrawals perfectly – They monitor investigations and move funds right before a freeze is issued.
How Can We Strengthen Freezing Measures?
Inclusive Regtech (Regulatory Technology) and Open Source AML (Anti-Money Laundering) solutions—like those available on Mulai Console—help financial institutions detect suspicious patterns early. This ensures that freezing orders are issued faster and more effectively, stopping bad actors before they can move their illicit funds.
By staying ahead with technology, we make sure the “freeze” command works before criminals slip away.
🔗 Source: ACAMS Glossary of AML Terms
#AML #FinancialCrime #Regtech #InclusiveRegtech #OpenSourceAML #100HariNulis
