Title: International Fraud and Forgery Dominate Money Laundering Crimes, Says Report
Subtitle: Annual report highlights the increasing use of cash for illicit activities
Date: Monday, [Current Date]
In a recent annual report released by the Anti-Money Laundering and Terrorist Financing Authority, it has been revealed that international fraud, deceit, and forgery have become the leading areas of criminal activity associated with money laundering and terrorist financing. The report, which reviews trends, risks, and criminal patterns identified in the past year, sheds light on the changing landscape of economic crime in the global village.
According to the report, fraud, deceit, and forgery accounted for almost a quarter (23%) of the identified crimes related to money laundering and terrorist financing in 2022. This form of criminal activity has surged to the forefront, surpassing other significant areas such as tax and VAT offenses (21%). Additionally, membership or management of criminal organizations made up 13% of the identified crimes.
The report also highlights the prevalence of “international activity” as the most prominent pattern of operation among money laundering criminals, making up 20% of all methods of operation. In other words, international fraud has become the most common form of money laundering crime.
Despite efforts to reduce the use of cash and combat black capital, the report reveals that criminals continue to employ cash smuggling as a central tool for money laundering. The use of cash has seen a significant increase from 9% in 2020 to 17% in 2022, showcasing the limitations of cash restrictions.
Financial service providers, including money changers and loans/credit, were also implicated in facilitating money laundering activities. Money changers accounted for 14% of the reported cases, while loans and credit were involved in 12% of the incidents.
The report further underscores the importance of international intelligence cooperation in combating money laundering and terrorist financing. Approximately 77% of requests for information in 2022 came from European countries, with 13% originating from the Americas. The Anti-Money Laundering Authority communicated mainly with European countries (68%) in terms of financial intelligence, followed by the Americas (15%) and the Middle East (10%).
Addressing concerns raised by the State Comptroller Matanyahu Engelman earlier this year, the report also reveals the time it takes for the Authority to process requests for information related to financial crime. On average, the Authority conducts an intelligence investigation and sends intelligence information to enforcement and security bodies within two weeks (15 days) and to investigative bodies within three weeks (25 days).
The report highlights several successful investigations conducted by the Authority, resulting in indictments, money seizure, and substantial confiscation of criminal funds. Notably, one investigation uncovered a money laundering scheme involving a financial services provider connected to a notorious criminal organization. The accused, known for his involvement in drug trafficking, used contracting companies linked to the criminal organization to receive tens of millions of shekels through fraudulent practices.
Another investigation exposed an extortion and money laundering operation by one of the country’s most prominent crime families. The family used threats and coercion to extort money from individuals who had won public tenders for land the family had taken over. The proceeds from the extortion were then funneled through a financial services provider and distributed to straw men and companies associated with the crime family.
The publication of this report aims to increase transparency and address previous criticisms directed at the Anti-Money Laundering Authority. The report emphasizes the authority’s commitment to combating economic crime and money laundering and showcases its significant contributions to national and international investigations.
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