TRADE BASED FINANCIAL CRIME - beyond TBML (VOL 2)

This series does more than dispel myths: it provides detailed, rational, explanations of the core issues.

Money laundering is a subset of trade-based financial crime, it's a derivative and it only exists because other offences have been committed. So it's easy right? There's criminal conduct, someone has benefited so you submit a suspicious activity report, dust off your hands and move on.

Well, no. That's what the people who talk about "Trade-based money laundering" will tell you. Yet, it's such a small part of the picture that not only is it misleading to isolate it, it's actually dangerous to directors, staff and businesses.

It's time to get the full picture.

Volume 3, to wrap up the series is in preparation.

Full contents vol 2:

Contents

CAVEAT  1

COPYRIGHT  1

REPRODUCTION  1

PREFACE  2

Chapter 1: Predicate Crime: Lists – v – All Crimes.  17

1.1 It might seen “criminal” but is it a predicate crime?  17

1.2 The non- and de-criminalisation of conduct in favour of regulation.  18

1.3 Criminal law has always started with the people. Locally.  21

1.4 A US judge has opened the door for confiscation proceedings against companies which have benefited from laundering.  26

Chapter Two: Shipping and aircraft registers  34

2.1 the relationship between shipping and aircraft registers and free trade zones.  34

2.2 Treatment of arrested seafarers.  44

2.3 How can transshipping be a financial crime?  45

2.4 Shipping registers and anonymity.  46

2.5 On the subject of boats... this is fishy.  51

Chapter Three: Crime in the most basic of trade.  56

2.1 Mobile Apps – tailor made for fraud.  57

2.2 Fraud, fraud everywhere and no honesty to drink  60

Chapter Four: Companies formed for the purpose of illegal activity  62

4.1 The charity founded to funnel money to terrorists.  62

4.2 The risks to financial institutions where the law and the common morality are in conflict.  65

4.3 Relating conduct to reporting obligations  67

4.4 Case Study: global expansion of a company that developed an illegal business model.  71

4.5 Case Study: Laundering the proceeds of illegal activity by a company.  78

 Chapter Five: Financial Sector Fraud and Regulatory Capture.  82

5.1 The criminal bank that almost took over a government  82

5.2 Not WISE  87

5.3 F, no I, DIC  92

5.4 Fake Credibility – far from a new problem  97

Chapter Six: Another bank and another government  105

6.1 Case Study: from second hand car dealer to control of a bank and a government.  105

6.2 Value Added Tax / GST - Missing Trader / Carousel Fraud as a service  113

6.3 Online, later internet, banking as an important part of international fraud.  121

Chapter Seven: Corporations as vehicles for organised crime.  126

7.1 Businesses as a shield for individual malfeasance.  126

7.1.1 Case study: The friendly fisherman.  126

7.1.2 Case Study: commercial fronts for massive benefits fraud.  127

7.1.3 Business email compromise used corporate structures.  127

7.2: Shell companies  130

7.2.1 What are shelf and shell companies?  130

7.3: Corporate fraud  139

7.3.1 Personality  139

7.3.2 Strict liability and disobedient staff  140

Chapter Eight: The mis-named "ultimate beneficial owner" regime  160

8.1 What is it and why do we care?  161

Chapter Nine: Fraud on markets  168

9.1 America’s sweethearts and their massive fraud.  168

9.2 Blue Chip Group  180

Chapter 10: Fraud on the public purse  183

10.1 examples of offences.  183

10.2 Companies formed for the purpose of committing financial crime revisited.  183

10.3 Massive organised fraud on a social budget.  184

10.4 Pandemic fraud - UK  210

Chapter 11: Criminal networks at the heart of the financial sector.  221

11.1 Black eyes and red faces but not a panda in sight.  221

11.1.1 How was it done?  224

11.2 Fishy financing for Mozambique  245

Insolvency offences  254

11.3 Bookshop owner cooked the books.  255

Chapter 12: Using insolvency (civil) court proceedings to identify potential criminal activity.  258

12.1 British Home Stores  258

12.2 Keeping the Kids Company  271

12.3 Failure to pay due salary or wages.  279

12.4 If you can't trust the currency, what can you trust?  282

Chapter 13. Competition, cartels, monopolies and anti-trust.  293

13.1 aren’t these all the same?  294

13.2 Google ats European Union.  297

13.3 TikTok  315

13.4 Phishing as a service.  326

Chapter 14: Environmental crime  330

14.1 Scraping the surface  330

14.2 Dumping public waste into public watercourses  330

14.3 Case Study: Strawberries.  331

14.4 Case Study: long jail sentences for food company officers.  333

14.5 Polluting waterways  335

14.6 "I think we are in serious trouble."  336

14.7 Persistent failures at an aircraft manufacturer  340

Chapter 15: Health and Safety  344

15.1 How laws have created a crack that allows companies to slip through the most powerful laws: those relating to money laundering.  344

15.2 Overwork forced unsafe practices.  347

Chapter 16: Companies used for financial crime.  349

16.1 Director stole money from the company's bank account.  349

16.2 Illegal waste management company identified as a result of reports of suspicions of human trafficking.  351

Chapter 17: Commercial exploitation of children for sexual abuse  354

17.1 Looking deeper into a subject many people want to hide.  354

17.2 Full Unlawful Carnal Knowledge  355

17.3 Sexual Perversion is endemic in all societies.   356

17.3 Over time, things improved dramatically. Then they didn't.  358

17.4 Violence including sexual violence has been ordered, recorded and sold for more than half-a-century  360

17.5 Is the law too segmented?  361

17.6 An increasing pool of perverts and of providers  362

17.7 How technology has affected demand and supply.  364

17.8 The tail and the dog.   365

17.9 The Selling and and renting out of children has a long history.  365

17.10 Table d’hôte or à la carte?  366

17.11 Money laundering reports are not a viable solution.  367

17.12 Rich and Powerful - the corporations who take the money but deny their part.  368

17.13 Child labour in the USA  370

17.14 Children in the global supply chain.  371

Chapter 18. The commercial exploitation of migrants  376

18.1 Smuggling v trafficking  376

Chapter 19. Racketeering and Organised Crime  383

Chapter 20: Online market places.  402

20.1 Counterfeits as a fraud.  402

20.2 Improper labelling  405

20.3 Counterfeits on online platforms  409

TAILPIECE  414

Coming in Volume 3  416