Money laundering and asset cloaking techniques

Abstract

PurposeThe purpose of this paper is to explore the various typologies and methods used to cloak assets following the placement stage of money laundering.Design/methodology/approachTechniques used to hide assets and cloak ownership, ranging from simple nominee arrangements through to complex financial transactions are explored.FindingsThere are a myriad of methods available to money launderers to cloak their assets.Research limitations/implicationsMore work needs to be done on the issue of information gateways.Practical implicationsAssets are cloaked to obfuscate the trail and make it difficult for law enforcement to “follow the money”. Understanding the methodologies used is the first step to understanding the problem.Originality/valueA number of cases from Canada, the USA and Australia were studied, as well as reference material advisors use for asset protection.