#QuickbiteCompliance day 255
🔍 The Invisible Rule That Traps Good Companies: How Criminals Exploit “Strict Liability”
Imagine playing soccer where you get a red card—not because you broke the rules—but because someone on your team did. You didn’t know. You didn’t mean to. But you’re punished anyway. That’s strict liability in sanctions compliance. Even if a company has great rules and tries hard to follow them, they can be fined if someone slips up.
### 🕵️♂️ How Bad Guys Use This to Hide Dirty Money
1. The “Invisible Owner” Trick
Criminals set up fake companies using stolen IDs. When real companies unknowingly do business with them, regulators fine the real company—not the criminal hiding offshore.
Example: A drug cartel “sells” fake goods through a shell company in Panama. A European bank processes the payment—and gets fined $10M, while the cartel vanishes .
2. The “Ooops, Wrong Address” Game
Bad guys use tiny errors to move money. They might list “Tehran” as “Teheran” on an invoice. Banks that miss the typo face fines, even if their compliance tools are top-notch.
Example: A shipment labelled “machinery parts” from a sanctioned country slips through—fining the shipping company millions .
3. The “Nested Doll” Scam
Criminals hide inside legitimate businesses. A small fintech (with good intentions) partners with a foreign bank. Unknowingly, that bank serves terrorists. The fintech gets punished—not the terrorists .
### 🛡️ How Do We Fight Back?
– #InclusiveRegtech: Tools like Mulai Console use open-source tech to help all companies—big or small—spot hidden risks (like fake owners or typos) at low cost .
– #OpenSourceAML: Sharing free detection rules so a village bank in Kenya has the same power as Wall Street.
> 💡 Truth: Strict liability isn’t about fairness. It’s about forcing everyone to be a detective. But with smart, affordable tech, we can make crimes harder to hide.
🔗 Learn terms like shell companies or nested banking: [ACAMS Glossary](https://www.acams.org/en/resources/aml-glossary-of-terms)
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#SanctionsCompliance #StrictLiability #FinancialCrime #AML #AntiMoneyLaundering #Regtech #Fintech #RiskManagement #InclusiveRegtech #OpenSourceAML #100HariNulis #StopFinancialCrime