Financial Crime World

Here is the rewritten article in markdown format, following proper headings, subheadings, and bullet points:

Case Studies

These case studies highlight various typologies of financial crimes and provide insight into the red flags that may indicate illicit activity.

Typology 1: Insider Trading

Background

A Cayman bank maintained an account with “Company A” used to purchase almost 400k shares of Entity S, valued at $7 million. The stock traded on an exchange in Country C, and nine days after the last trade was executed, Entity S announced a non-binding “going-private” proposal.

Red Flags

  • Client trading in a security with material connections
  • Concentrated trading activity over a short period
  • Major announcement following concentrated trading activity

Typology 2: Local Corruption - Laundering Proceeds of Theft by Defrauding Non-Profit Organization

Background

Mr. X, the general manager of a prestigious members-only club, embezzled funds amounting to $360,165 over a five-year period. He used his position of trust to conceal his criminality and falsified records to show cash being used for miscellaneous club expenditure.

Red Flags

  • Association with corruption
  • Purchase of valuable assets (i.e., vehicles)

Typology 3: Cybercrime - Fraudulent Wire Transfers

Background

A victim’s email account was compromised through a vulnerable version of WordPress, allowing scammers to send fake job advertisements and solicit money mules. The scammers used VPNs, proxy servers, and fake domains to hide their identity.

Red Flags

  • Money muling
  • Use of VPNs and proxy servers
  • Fake domains

Typology 4: Proceeds of Insider Trading

Background

A Cayman bank maintained an account with “Company A” used to purchase almost 400k shares of Entity S, valued at $7 million. The stock traded on an exchange in Country C, and nine days after the last trade was executed, Entity S announced a non-binding “going-private” proposal.

Red Flags

  • Client trading in a security with material connections
  • Concentrated trading activity over a short period
  • Major announcement following concentrated trading activity

Typology 5: Local Corruption - Using TCSPs to Launder Proceeds of Crime

Background

A Cayman bank and two Trust and Corporate Services Providers were used to launder proceeds of crime through TCSPs. The scheme involved using TCSPs to conceal the true ownership and source of funds.

Red Flags

  • Association with corruption
  • Use of TCSPs to launder proceeds of crime