Individuals seeking to hide or launder money often turn to tangible assets like real estate, art, and luxury goods. In essence, while technology has introduced new avenues for hiding assets, it has also empowered investigators with tools that, when used adeptly, can unravel even the most sophisticated concealment techniques. The landscape of asset tracing has, as a result, transformed into a high-tech game of cat and mouse, with both sides continuously evolving their strategies. How do individuals use real estate, art, or other tangible assets to hide their wealth? Are there particular “red flags” that suggest such methods? Individuals seeking to hide or launder money often turn to tangible assets like real estate, art, and luxury goods because they can be easier to cloud and offer value storage in something relatively stable. Here’s how these assets are commonly used: Individuals may purchase properties through shell companies, trusts, or other legal entities that mask the true owner’s identity. Purchasing real estate in foreign countries, especially those with strong property rights but weak anti-money laundering controls, can help hide assets. The art market often allows buyers and sellers to remain anonymous, especially at auctions. The value of art can be very subjective, allowing for over- or under-valuation, which can be a means to transfer or hide large sums of money. While the use of tangible assets for hiding wealth can be subtle, there are certain “red flags” or indicators that can suggest such methods, If properties or art pieces are frequently bought and sold, especially in a short timeframe, it might indicate an attempt to confuse the paper trail. Purchases that seem disproportionate to an individual’s known source of income or wealth can be suspicious. The use of multiple layers of corporations, trusts, or other entities, especially if they’re based in multiple jurisdictions, can be a sign of an attempt to hide the true ownership or origin of funds. Detecting and proving the illicit concealment of wealth requires a multifaceted approach, combining the scrutiny of financial transactions with a deep understanding of the behaviors and patterns associated with money laundering and asset hiding. How do you prioritise your tracing efforts when time is of the essence, such as impending bankruptcy or potential asset transfers? What immediate steps can be taken to prevent impending asset transfers? Identifying which assets are most vulnerable to being moved, hidden, or liquidated is always a priority for our global team, if you know they exist of course. If you don’t the search starts from the ground up. While real estate and tangible assets can be of high value, they usually take time to sell. Bank accounts, stock portfolios, and other liquid assets can be transferred quickly and if we know about them, they become our primary focus. Banking & Financial Services 24 Finance Monthly. Front Cover Feature
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