MODERN AND CREATIVE WAYS OF MONEY LAUNDERING: A SNEAK PEEK IN MODUS OPERANDI

Every year, an astonishing $800 billion to $2 trillion circulates through the global economy as laundered money, making up 2-5% of global GDP.

- Raj Kumar Sharma

This isn't a novel phenomenon, yet the tactics behind it are in a constant state of flux and sophistication due to technological advancements and the globalized nature of today's world. Criminals are continually crafting more complex methods to launder money, posing significant challenges for regulatory bodies in detecting and halting these illegal activities.

Beyond the immediate financial loss, individuals who fall prey to such frauds endure profound emotional distress. Financial institutions are not spared either; the consequences they face extend beyond monetary penalties. They risk losing something much more critical - public trust. Inadequate adherence to Anti-Money Laundering (AML) regulations not only places these institutions at odds with legal frameworks but also inflicts severe harm on their reputation and brand integrity. This underscores the importance of implementing robust AML technologies.

While one may be aware of the more common money laundering methods like bank laundering, smurfing, or fraudulence through cash, criminals are now using advanced technology and more unconventional techniques to carry out their fraud schemes.

Here, we discuss seven such creative money laundering methods to watch out for.

1. Auction of Art and Creatives:

Art auctions, traditionally viewed as exclusive events for the financially upper-class individuals, is now increasingly being utilized as conduits for laundering illicit funds. The non-transparent nature of art valuation plays into the hands of criminals, allowing them to transfer large amounts of money hiding behind legitimate transactions with relative ease.