#QuickBiteCompliance Day 133
Who Controls the Money? Understanding Grantors and Financial Crime
Imagine you have a piggy bank, but instead of keeping it yourself, you give it to a friend to hold onto. You tell them how to use the money, but technically, they now control it. In the financial world, the person who gives away money or property like this is called a grantor. They create trusts or move assets while deciding how they should be used.
But what if the bad guys take advantage of this?
Some criminals abuse grantor roles to commit financial crimes like money laundering and fraud. Here’s how:
🔍 Fake Trusts – They set up trusts using fake names or stolen identities, making it nearly impossible to trace where the money really came from.
💰 Hiding Dirty Money – Criminals place illegal funds into trusts, making them look legitimate. Once the money is inside, it’s harder to detect.
📑 Layering Ownership – They move assets through multiple trusts and people, creating a confusing web that law enforcement struggles to untangle.
Good financial controls ensure grantors don’t become tools for criminals.
✅ Transparency in asset transfers
✅ Strong identity verification
✅ Independent oversight of trusts
Technology is helping tighten these gaps. Inclusive Regtech and Open Source AML solutions, like those in Mulai Console, ensure that grantor-based transactions are monitored and secure.
Let’s build better systems to stop financial criminals in their tracks!
🔗 Learn more: https://www.acams.org/en/resources/aml-glossary-of-terms
#InclusiveRegtech #OpenSourceAML #100HariNulis #FinancialCrime #TrustAbuse #AML #Compliance!
