Page 50 - Banking Finance May 2024

A R T IC L E
ARTICLE

MODERN AND

CREATIVE WAYS OF

MONEY LAUNDERING:

A SNEAK PEEK IN

MODUS OPERANDI

E very year, an astonishing $800 billion to $2 trillion face extend beyond monetary penalties. They risk losing
something much more critical - public trust. Inadequate
circulates through the global economy as
laundered money, making up 2-5% of global GDP.
adherence to Anti-Money Laundering (AML) regulations not
This isn't a novel phenomenon, yet the tactics
behind it are in a constant state of flux and sophistication only places these institutions at odds with legal frameworks
but also inflicts severe harm on their reputation and brand
due to technological advancements and the globalized integrity. This underscores the importance of implementing
nature of today's world. Criminals are continually crafting robust AML technologies.
more complex methods to launder money, posing significant
challenges for regulatory bodies in detecting and halting While one may be aware of the more common money
these illegal activities. laundering methods like bank laundering, smurfing, or
fraudulence through cash, criminals are now using advanced
Beyond the immediate financial loss, individuals who fall prey technology and more unconventional techniques to carry out
to such frauds endure profound emotional distress. Financial their fraud schemes.
institutions are not spared either; the consequences they
Here, we discuss seven such creative money laundering
methods to watch out for.
About the author
1. Auction of Art and Creatives:
Raj Kumar Sharma Art auctions, traditionally viewed as exclusive events for the
Chief Manager, Faculty financially upper-class individuals, is now increasingly being
Zonal Learning Centre, utilized as conduits for laundering illicit funds. The non-
Union Bank of India, Mangaluru
transparent nature of art valuation plays into the hands of

44 | 2024 | MAY | BANKING FINANCE