Question

Describe and discuss the different methods of Money-Laundering

Answer 1

Different methods of money laundering are as follows-

A. Business email compromise- This is a type of money laundering in which businesses which are working with the foreign suppliers and doing transactions are targeted and they will be a compromised by the criminal on the legitimate email accounts of the business is computer intrusion and they will be trying to get an unauthorised access to the funds and defraud another party so so it will be helping in lending the money without much knowledge of the victim.

B. Synthetic identity related to creation of fake identity on the internet- criminals are using fabricated information in order to open account for various credit cards and deposits and basic security check is circumvented by the criminals and they will be temporary nature in order to clone the information and vanish once the purpose is finished leaving no trace of the owners

C. Anonymous online payment services like prepaid gift cards along with prepaid debit Card and Credit cards can be purchased in completely anonymous manner and fictitious details and it will be helping in cash payment as well so there will be value in this cards which can be redeemed online without revealing the Identity of the person helping to launder the money.

D. Virtual currencies will be there which will be combination of various currencies that Bitcoin and ethereum and there will be anonymity embedded into this virtual currencies and these currencies are not connected to a private identity of the person and they will be not regulated so there is a very high risk related to money laundering with these type of virtual currencies.

E. Online banking with loose norms are easy target for these money launderers because there are loopholes in the online banking and they are often undermined in the banking system so these weaknesses will be helping in a striking ground for the criminals making use of these loose standards of the online banking for money laundering and terrorist financing purposes so they will be using the the loose norms of an online banking in order to launder money.