#QuickBiteCompliance Day 154
Home Sweet Hideout: How Criminals Exploit Residency to Evade the Law
Imagine your school has different rules depending on where you live. Some neighborhoods have strict rules, while others don’t check as much. If a troublemaker wants to break the rules without getting caught, they might claim to live in a different neighborhood with fewer restrictions.
This is exactly how criminals misuse jurisdiction of residence—the country where they officially live most of the time. While most people live where they say they do, bad actors manipulate this to dodge financial crime controls.
How Do Criminals Take Advantage?
🚨 Hiding Assets – A fraudster claims to live in a country with weak financial regulations to avoid taxes or hide stolen money.
🚨 Earning Illegal Benefits – Someone falsely declares residency in a low-tax country to avoid paying taxes where they actually live.
🚨 Disguising Their Identity – Criminals use fake residency documents to open bank accounts, making it harder to trace illegal money flows.
Why This Matters
Banks and financial institutions must verify where a person really lives. If someone hides their true residency, they could be evading taxes, laundering money, or bypassing sanctions.
Fighting Back with Smarter Tools
Financial crime investigators use technology to track unusual residency claims and spot red flags. Inclusive Regtech and Open Source AML solutions—like those from Mulai Console—help detect risks and protect the financial system.
Residency isn’t just an address—it can be a key tool for criminals. But with the right controls, we can keep the system safe and transparent for everyone.
🔗 Learn more: https://www.acams.org/en/resources/aml-glossary-of-terms
#InclusiveRegtech #OpenSourceAML #100HariNulis #AML #FinancialCrime #Compliance
