Financial Intelligence Unit (FIU) Cases: A Glimpse into Money Laundering and Financial Crimes

The Financial Intelligence Unit (FIU) plays a crucial role in detecting and reporting suspicious transactions and activities related to financial crimes. In this article, we will delve into three notable cases handled by the FIU, highlighting the tactics used by perpetrators to launder money and other financial misdeeds.

Case 1: Changing Beneficial Owner of an Account

In one case, the FIU reported suspicious activity related to a change in the beneficial owner of an account. This change coincided with the entry into effect of automatic exchange of information with the country of residence of the former beneficial owner. This situation raised red flags, as it may be indicative of an attempt to conceal illicit financial activities.

Case 2: Massive Over-invoicing

Another case involved massive over-invoicing of two oil drilling platforms, where the buyer was a national government. The FIU had to clarify whether the representative of the government had misappropriated government funds during the purchase price negotiations and whether funds had been laundered with the involvement of various domestic and foreign financial intermediaries.

Case 3: Non-disclosure of a Death

A third case highlighted the issue of non-disclosure of a death, where benefits were still being paid for several months after the person’s passing. This concealment of information allowed the perpetrator to continue receiving benefits illicitly.

Red Flags Indicative of Money Laundering

The FIU has identified certain signs that can indicate money laundering:

• Bank-internal transfers: Transfers between entities with a very short period on each account can be indicative of money laundering.
• Shifting assets back to the country of origin: Signs that assets are being shifted back to the countries from which they originated can also suggest money laundering.
• Changing beneficial owners: Changing beneficial owners or concealing deaths can be used as a means to launder money.

The FIU’s Role in Combating Financial Crimes

The FIU plays an essential role in detecting and reporting suspicious transactions and activities to the relevant authorities, such as:

• Office of the Public Prosecutor
• Fiscal Administration
• Financial Market Authority

By analyzing and reporting on complex fact patterns, the FIU can contribute significantly to bringing perpetrators to justice and preventing financial crimes.