Use of remittance services
A law enforcement investigation revealed that a number of organised crime syndicates were using a network of money remittance dealers in Country A to launder the proceeds of drug importation and distribution operations. The network of money remitters was controlled by a husband and wife and the wife’s mother in Country B. The money remitters operated out of several shops, which were used by suspects from major crime syndicates from Country B based in Country A. The suspects transferred money to syndicates in Country B. The money remitters used various methods to prevent authorities from detecting their money laundering activities. These methods included:
- failing to report transactions
- concealing the identity of their clients and the overseas recipients
- using other remitters to reduce the size of the international transfers and conceal the frequency of the international transfers
- paying airline pilots to physically carry large amounts of cash overseas.
Employees of major banks were also investigated for their failure to report large-volume deposits and transfers made through the remittance dealers’ bank accounts.
Investigators charged the proprietors of the money remittance providers and associated businesses with laundering in excess of US$85,000,000. One of the airline pilots also pleaded guilty to money laundering.
Indicators:
- Structuring of funds transfers
- Use of cash couriers
- Use of multiple remittance service providers to transfer funds to common overseas beneficiaries