United Nations Office on Drugs and Crime Risk of Money Laundering through Financial Instruments RiskRisk ofof MoneyMoney LaunderingLaundering throughthrough FinancialFinancial Instruments,Instruments, UsersUsers andand EmployeesEmployees ofof FinancialFinancial InstitutionsInstitutions English Version 1 Copyright UNODC February 2010 Non-official translation © UNODC Calle 102 No 17 A - 61 Bogotá - Colombia Phone: (+57 1 ) 6467000 Fax: (+57 1 ) 6467000 Ext: 337 E-mail: [email protected] www.unodc.org Version design: Diana Guayara V. Print edition by: Alvi Impresores Ltda. Phone: 250 1584 Printed and Made in Colombia CONTENTS Page INTRODUCTION ............................................................................................................... 7 PART I KNOWN FINANCIAL INSTRUMENTS. ............................................................................ 9 1. CHECKING ACCOUNT ..................................................................................... 11 1.1 Description ........................................................................................................ 11 1.2 Documents of interest ....................................................................................... 12 1.2.1 Application for opening account ........................................................................ 12 1.2.1.1 Warning signs during opening and management of checking account ............. 13 1.2.2. The recording of authorized signatures ............................................................. 15 1.2.2.1 Warning signs during the recording of authorized signatures for checking account .............................................................................................................. 16 1.2.3. Account statement ............................................................................................ 16 1.2.3.1 Warning signs for the monthly checking account statement ............................. 17 1.2.4 Deposits ............................................................................................................ 18 1.2.4.1 Warning signs for deposits to checking account ............................................... 19 1.2.5 Checks .............................................................................................................. 19 1.2.5.1 Warning signs for checks written against a checking account .......................... 20 1.2.6 Transfers ........................................................................................................... 21 1.2.6.1 Warning signs for transfers from or to a checking account ............................... 22 1.3 Risk of money laundering through checking account ........................................ 23 2. SAVINGS ACCOUNT ........................................................................................ 23 2.1 Description ........................................................................................................ 23 2.2 Documents of interest ....................................................................................... 24 2.2.1 Application for opening account ........................................................................ 24 2.2.1.1 Warning signs during opening and management of savings account ............... 25 2.2.2 The recording of authorized signatures ............................................................. 27 2.2.2.1 Warning signs for the recording of authorized signatures for savings account . 28 2.2.3 Account statement ............................................................................................ 28 2.2.3.1 Warning signs regarding periodic withdrawals from savings account ............... 30 2.2.4 Deposits ............................................................................................................ 31 2.2.4.1 Warning signs regarding deposits to savings account ...................................... 31 2.2.5 Savings account withdrawal slips ...................................................................... 32 2.2.5.1 Warning signs regarding savings account withdrawal slips .............................. 33 2.2.6 Transfers ........................................................................................................... 34 2.2.6.1 Warning signs regarding local and international transfers to or from a savings account .............................................................................................................. 34 2.3 Risk of money laundering through savings account .......................................... 35 3. CERTIFICATE OF DEPOSIT ............................................................................ 36 3.1 Description ........................................................................................................ 36 3.2 Documents of interest ....................................................................................... 37 3.2.1 Application to open a Certificate of Deposit CD ................................................ 37 3.2.1.1 Warning signs regarding opening a Certificate of Deposit ................................ 39 3 Risk of Money Laundering through Financial Instruments, Users and Employees of Financial Institutions Page 3.2.2 Certificate of deposit purchase receipt .............................................................. 41 3.2.2.1 Warning signs regarding purchase receipts or applications for a CD ............... 42 3.2.3 Issuance or renewal of a CD ............................................................................. 42 3.2.3.1 Warning signs regarding issuance of a Certificate of Deposit certificate ............. 43 3.2.4 Redemption receipts for Certificate of Deposit .................................................. 44 3.2.4.1 Warning signs for redemption receipts for a CD ............................................... 45 3.3 Risk of money laundering through Certificates of Deposit ................................ 47 4. WIRE TRANSFER ............................................................................................ 47 4.1 Description ........................................................................................................ 47 4.2 Documents of interest ....................................................................................... 49 4.2.1 Application for opening a “wire transfer account” and receipts for sending international wire transfers ................................................................................ 49 4.2.1.1 Warning signs regarding opening a “wire transfer account” and receipts for sending international wire transfers .................................................................. 51 4.2.2 Receipt for cashing an international wire transfer ............................................. 53 4.2.2.1 Warning signs regarding receipts for sending international wire transfers ............. 54 4.3 Risk of money laundering through international wire transfers ......................... 56 5. INSURANCE POLICY ....................................................................................... 57 5.1 Description ........................................................................................................ 57 5.2 Documents of interest ....................................................................................... 58 5.2.1 Policy application form for an insurance company ............................................ 58 5.2.1.1 Warning signs regarding insurance policy application form for an insurance company ............................................................................................................ 60 5.2.2 Receipt for payment of insurance premium ...................................................... 62 5.2.2.1 Warning signs for receipts of payment for insurance premium ......................... 64 5.2.3 Issuance or renewal of insurance policy ........................................................... 65 5.2.3.1 Warning signs regarding issuance or renewal of insurance policy certificates . 66 5.2.4 Receipt for early insurance policy redemption .................................................. 67 5.2.4.1 Warning signs regarding receipts for early redemption of an insurance policy . 67 5.3 Risk of money laundering through insurance policy .......................................... 70 PART II SPECIAL FINANCIAL INSTRUMENTS. ........................................................................... 71 6. FIDUCIARY BUSINESS .................................................................................... 73 6.1 Description ........................................................................................................ 73 6.1.1 Investment Trust Fund ...................................................................................... 74 6.1.2 Management Fiduciary ...................................................................................... 75 6.1.3 Guarantee Trust Fund ....................................................................................... 77 6.1.4 Securitization Trust Fund .................................................................................. 77 6.1.5 Investment Trust Fund Banking ........................................................................ 78 6.2 Documents of Interest ....................................................................................... 78 6.2.1 Application form for opening a fiduciary assignment or commercial trust account . 79 6.2.2.1 Warning signs regarding application form for opening a fiduciary assignment