Typologies

The methods used for money laundering and terrorist financing are in constant evolution.  As the international financial sector and other businesses implement the standards set by the FATF, criminals must find alternative channels to launder the proceeds of their criminal activities and finance their illicit activities.

International organisations such as the FATF and the Egmont Group of Financial Intelligence Units identify new threats and research money laundering and terrorist financing methods.  They also produce typologies reports, which describe and explain the nature of these methods and threats, thus increasing global awareness and allowing for earlier detection of money laundering and terrorist financing.

In order to assist financial services businesses and prescribed businesses in Guernsey to be aware of the variety of methods used to launder money and to finance terrorism, the Commission is providing links to documents which provide examples of cases.  Businesses may find these cases useful for training and awareness purposes.

In addition, the Jersey Financial Services Commission and the Joint Financial Crime Unit in Jersey have together commissioned an AML/CFT Typologies document using local case studies where they are available otherwise international cases are included where they are relevant to local businesses.

A document has also been issued by the Egmont Training Working Group, which undertook an initiative to draw together a compilation of sanitised cases - the Egmont Case Studies - about the fight against money laundering undertaken by the Egmont Group member FIUs.  The cases were subdivided into six categories, containing five general money laundering typologies and one chapter focusing on intelligence exchange successes. The categories used were:

  • Concealment within Business Structures
  • Misuse of Legitimate Businesses
  • Use of False Identities, Documents, or Straw Men
  • Exploiting International Jurisdictional Issues
  • Use of Anonymous Asset Types
  • Effective Use of Intelligence Exchanges

Documents on the methods and trends used to launder proceeds of criminal activities and finance illicit activities issued by the FATF, can be found here.

Case studies involving charities and non profit organisations can be found using the links below:

Case Studies on the Misuse of Charities and Non-Profit Organisations 46KB
World Bank Working Paper - Non-Profit Organisations and the Combatting of Terrorism Financing 1.2MB
Case Studies Involving Dealers in High Value Goods 45.1KB