How can money be laundered using Investment Companies and Trusts?

These are used mostly in the layering stage of money laundering, facilitated by:

  1. multi-jurisdictional structures of corporate entities and trusts;
  2. involvement of non-financial intermediaries/professionals;
  3. use of nominees (individuals and businesses, including shell companies);
  4. buying and selling of a security with no discernible purpose or in circumstances which appear unusual.