A European FIU received two disclosures from two different banks. Marvin, a foreign national, had presented five bank cheques to be credited into his newly opened company account.

He told the banks that the US $1,600,000 involved originated from land sales in an African country that had been undertaken by his real estate company. The banks disclosed to the national FIU in view of the scale of the transactions and the lack of supporting data given by Marvin.

Investigations by the FIU established an interesting link to Marvin’s father. His father was serving a prison term in another country for fraud, espionage, corruption and other criminal activities. Marvin’s father had been sentenced to twelve years imprisonment after a foreign bank had collapsed as a result of a large-scale fraud that he had organised.

A while after the initial disclosure, Marvin phoned his bankers to request meetings to discuss further investments by his company, and both institutions made rapid disclosures to the FIU to alert them to the impending meetings. FIU contacted the local police who placed Marvin under surveillance as soon as he re-entered the country. Marvin was subsequently arrested on money laundering charges.

An exchange of information with the foreign country facilitated the preparation of criminal proceedings against Marvin on charges of criminal conspiracy, money laundering and fraud. The foreign authorities also informed the FIU that Marvin’s father had amassed a sizeable fortune. He had re-invested this money into real-estate companies and financing enterprises registered in his own name, Marvin’s name and in the names of other family members.

In the course of the investigation, Marvin’s house was searched. The police found numerous documents related to financial transactions performed by Marvin’s father. At time of writing, preparations for the trial were continuing.

Indicators :

New customer attempting large transactions with no supporting rationale