Domestic Authorities Uncover Elusive Money Laundering Techniques
In a significant crackdown on financial crimes, domestic authorities have revealed the astonishing extent of money laundering and terrorist financing schemes used by criminals to conceal their identities and illicit funds.
Investigation Uncovers Web of Deceitful Tactics
The investigation has uncovered a complex web of deceitful tactics employed by individuals and organizations to evade detection. These methods include:
- Identity Fraud and False Identification: Criminals used fake IDs and personal information to disguise their involvement in illegal activities.
- “Gatekeepers” Services: Lawyers, accountants, and other professionals were complicit in obscuring the identities of beneficiaries and the sources of illicit funds.
- New Payment Technologies: The rise of emerging payment systems, such as cell phone- based remittance and payment platforms, has created new avenues for money launderers to exploit.
Virtual Assets and Insurance Products Misused
The authorities have also discovered that:
- Virtual Assets and Related Services: Criminals are exploiting the anonymity and ease of transactions offered by virtual assets and related services.
- Life Insurance Products and General Insurance Policies: Life insurance products and general insurance policies were misused to launder funds, with cases involving early cancellations, partial withdrawals, and returns in different currencies.
Additional Tactics Uncovered
Furthermore, investigators found that:
- Overpayment of Premiums: Criminals arranged for excessive payments or excessively high values of insurance reimbursements, which were then refunded to third-party accounts.
- Prepaid Cards: Prepaid cards were used to facilitate anonymous transactions and cross-border money laundering.
- Tax Evasion: Tax evasion was a common tactic, with criminals underreporting income or creating false deductions to generate untraceable funds.
Risk-Based Approach Emphasized
The authorities emphasized the importance of identifying and assessing ML/TF risks using a risk-based approach. This involves understanding the risks faced by Oman, as well as those specific to individual financial institutions (FIs).
“The use of a risk-based approach requires FIs to allocate resources on a risk-sensitive basis,” said an official. “This allows them to focus on high-risk areas and take proportionate mitigation measures.”
Continued Vigilance Needed
The investigation highlights the need for continued vigilance and cooperation between authorities, FIs, and other stakeholders to combat money laundering and terrorist financing.