Financial Crime World

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Parallel Financial Investigations: A Guide for Moldova

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Definitions

Before diving into parallel financial investigations, it’s essential to understand some key definitions:

Transaction

  • An action based on a previous agreement between two or more parties, involving goods transfer, disposal, transformation, placement, or circulation.

Complex and Unusual Transaction

  • A single or multiple operations that don’t meet ordinary activity standards or are not characteristic of the client’s type of business.

Occasional Transaction

  • A one-time operation by an individual or legal entity without a business relationship with the reporting entity.

Parallel Financial Investigations

Parallel financial investigations are conducted to trace and collect evidence on criminal assets, especially when investigating income-generating crimes. Asset tracing should be done as early as possible and concurrently with direct investigation of the predicate crime.

Grounds for Initiating Parallel Financial Investigations

  • Investigating tax evasion
  • Profit-generating offenses committed by a group or organization
  • Economic offenses exceeding 20 average monthly salaries in value
  • Corruption offenses
  • Illicit enrichment (assets substantially exceed acquired funds)
  • Money laundering investigations
  • Terrorism financing investigations

Initiation and Content of Parallel Financial Investigations

Initiation involves setting objectives for proactive measures to establish the financial profile of the beneficial owner, identify, and freeze crime proceeds. Objectives pursued through parallel financial investigations include:

  • Identify and track suspicious transactions
  • Analyze financial records and statements
  • Establish connections between funds and beneficiaries

Establishing the Criminal Network by Highlighting Accomplices, Connections, and Services Used

  • Identify and interview witnesses and informants
  • Analyze communication records and data
  • Track financial flows and transactions

Identifying and Applying Constraining Measures on Perpetrators

  • Freeze assets and bank accounts
  • Impose travel restrictions
  • Seize property and goods
  • Apply other relevant sanctions