4TH JET: circuits (phases) of money

"The first phase placement. Unlike the underlying offenses of money laundering is a dynamic process in three phases: placement, layering and integration. Each of these phases is innocent in itself, but taken together, they are an attempt to conceal the profit derived from criminal activity. The first phase: placement (conversion of species). It is also called immersion or prewash. It consists of placing, by various techniques some more sophisticated than others, cash in the banking system, while concealing its illicit origin. This is the most vulnerable and the most risky for the criminal phase. This is why it uses different techniques to hide the illicit origin of the money. Among these, there

The split also called bank deposits "smurfing". The huge sums of money from the illegal activity is broken down into smaller sums, which will then be deposited in a bank account. It uses harmless people called "schtroumphf" for deposits.

The false statement gains games. This technique is to buy plates casino games with cash derived from an illegal activity, then convert them later money we believe that winning at the casino.

The purchase of luxury goods in cash. Here, luxury items (cars, art, jewelry, electronic equipment, boats, etc.. Objects) are bought and paid for in cash. They are used or resold later. In some cases, the property is registered in the name of friends or relatives. There is a variant of this technique is called "the Japanese ant", it is to remit money of criminal origin to several accomplices who buy jewelry, perfumes, luxury bags to Paris for example. These items are later sold in Japan as a "luxury item" in the luxury shops belonging to the trafficker.

The mix between dirty money and the proceeds of a legal business. With this technique, criminals buy businesses like pizzerias, bakeries, jewelers, casinos, hotels, restaurants, supermarkets business. The criminal money is mixed with the body and is made cheating on accounting.

The fictitious money overseas shipment. This method is to submit to the Post, for example, with a sum of money less than the threshold for reporting suspicious and ask to send money order to the credit of a fictitious person who is established in another country. After a few weeks, no one has come to withdraw money at the post office of the recipient, we request the reimbursement of the mandate will be made by a check drawn on the Treasury.

The technique of "Hawala". It is used in close-knit communities (ethnic groups, gangs, fraternities) and informal means any commercial or financial transaction based on trust and operating outside any legal framework. Transactions are not recorded and do not leave a trace.

Self-ready, with this technique, the dealer gives an accomplice an amount of illicit money. Accomplice "gives him" a sum equivalent supporting documents, to create the illusion that money is legitimate criminal. The repayment schedule of the loan by the Criminal adds to the appearance of legitimacy of the scheme.

Life insurance. This technique is to purchase life insurance contracts for very high premiums. After a few months, we do cancel the contract for touch are much lower.

The second phase stacking (allocation concealment) this phase is called "dispersion" or "patch." Dirty money was deposited in a bank account without arousing suspicion, he must now cover their tracks. The stack is therefore to deter their illegal income sources through a series of financial transactions, by their complexity and opacity are used to mask the origin of the funds initially placed.

Several techniques are also used in this phase.

The waltz of bank transfers. Dirty money is transferred from accounts accounts between banks increasingly renowned. Thus, from an account in a tax haven, the money will be transferred to an account of a small foreign bank, then another and so on foreign account. Each bank covers the respectability of the previous bank. The goal is to make it very difficult for an investigator to make the link between the final custodian of the account and the source of funds. This technique is facilitated by the opacity and speed systems bank transfers, including those managed by the SWIFT organization.

Services on the internet. Online services on the internet make money déculper opportunities. The principle is the same as casinos, restaurants. But this time, banking replace cash.

The third phase of integration (absorption legal channels). This phase also called "spin" or "recycling" is the final step. The last link in the chain is to provide a seemingly legitimate gains from illegal activities. The funds are reintroduced into the legitimate economy where they will mix with lawful original funds and giving the appearance of coming from a normal economic activity. At the international level, wring money laundering is a breeze for financial professionals. Globalization offers many opportunities for capital investment become clean. "

(Source book of Colonel Abdoulaye Oumar Dieng on Money)