Tag organized crime

After the legendary Vanagels and Gorin, a new generation of nominee directors has born.

They play a key role in maintaining the secrecy of thousands of beneficial owners and hundreds of thousands of business transactions. They do this by selling their names for use on official documents of the company, using addresses in obscure parts of the world, providing the anonymity for corrupt officials, tax evaders and organized criminals.

Opaque legal structures are one of the key ways to hide the real ownership of entities that can sometimes facilitate tax evasion, corruption and organized crimes. Using nominees is a key way of hiding the real owners. One of the problems is that legal authorities in the United States, United Kingdom and many other countries don’t hold nominee directors responsible for the conduct of the companies they front.

In addition, documents setting up offshore companies often include clauses that shield nominees from financial liability if the companies get sued. It is perfectly legal in many countries to avoid having your name appear as the director or owner of a company by employing the services of a nominee, whose name appears instead. Nominees are, in essence, renting out their name, and in doing so, providing the anonymity that corrupt officials, tax evaders and organized criminals require to move dirty money around the world. Gorin and Vanagels are far from lone players in this regulatory wilderness. They just became legendary.

The ICIJ, working with The Guardian newspaper in England and the BBC’s Panorama program, identified a group of 28 other nominee directors who have represented more than 21,000 companies between them, with individual nominees representing as many as 4,000 companies. The data went public with the offshore leak scandal of 2013.

For example, Jesse Grant Hester — a young nominee director based on the English Channel island of Sark— was the director for an Irish entity Candonly Limited, which an official inquiry later found was used by the regime of Iraqi dictator Saddam Hussein to cheat the United Nations’ Oil for Food Program. Until the practice was stamped out in the late 1990s, it was common for Sark residents like Hester to lend their names as directors to businesses around the world wanting anonymity. At the height of what became known as the “Sark Lark”, the 600 inhabitants of the island held 15,000 directorships between them, some of which later led to controversy.

After a crackdown by the British government, many nominee directors from Sark relocated to other jurisdictions like Cyprus, the United Arab Emirates, Mauritius, Ireland and Switzerland and, as a simple search in the company records shows, they simply resumed operations. For example, Jesse Grant Hester, born in 1976, has been listed as a director for at least 1,500 companies in the British Virgin Islands, Britain, Ireland, Mauritius, New Zealand, London, Lugano and Geneva. Listed below you can identify the new guard of the most important nominee directors among the 28 recognized in the offshore leek scandal:

  • Jesse Grant Hester (UK, DOB 1976),
  • Brenda Patricia Cocksedge (UK, DOB 1949),
  • Christina Cornelia Van Den Berg (South Africa, DOB 1964),
  • Marea Jean O’toole (Ireland, DOB 1972),
  • Stephen John Kelly (UK, DOB 1964)

They play a key role in maintaining the secrecy of thousands of beneficial owners and hundreds of thousands of business transactions. They do this by selling their names for use on official documents of the company, using addresses in obscure parts of the world. Some of the companies they represent are so evidently related to organized crime activities that even a child could find out: for example there is a company in Lugano held by Jesse Grant Hester together with the controversial trustee Rudy Chereghetti in Lugano, arrested and convicted for associations with mafia operations and fraud in Italy. Few simply queries in google will show this to you.


The respectable façade of modern shell companies

Tropical island’s and Alpine town’s offshore tax havens have more and more competion in Britain, the US and few European countries. Anonymous shell companies are behind so many crimes and misdemeanours that eliminating them should probably be “a no-brainer”, but today the OECD’s “white list” facilitates the money laundering industry to paint their facades with a new image. It is so easy to set up a company with hidden ownership in Britain and the US that even a dead man can do it: The great thing is that they look more respectable.

Criminals and corrupt politicians have found in offshore havens a tool so perfect that it has permanently changed how business is done in the region. By using offshore laws that stress secrecy over everything else including crime prevention, they have been able to set up networks of offshore companies where they can hide their assets from police, launder their money and evade taxes all at the same time. According to the Tax Justice Network, more than $250 billion is lost each year in tax revenues from wealthy individuals and criminals who hide their money in offshore accounts. That is money that by rights should be going toward better education, health care and infrastructure. On top of that, around $1 trillion — often money that corrupt leaders have stolen — flows out of developing countries into offshore accounts and wealthy banking centres.

Offshore registry firms are one-stop shops that for a fee will do everything from filing tax and annual reports to acting as the director of a client’s company. They often work with a registration firm in the offshore country with connections to local government officials. They may provide proxies to serve as directors. They will help a client issue shares and can find proxy shareholders. They might set up bank accounts. If law enforcement or journalists come sniffing around, the trail often ends with them. They will also help set up companies in other countries that will own, be owned by or work with the client’s company. In this way they set up a network of companies that are seemingly independent — but owned by the same person. This confusing arrangement more thoroughly hides ownership and thwarts accountability. They usually do this over the Internet and within a matter of hours or days and without a question. If they ask for identification, they will almost never verify the information they are given.

Offshore tax havens bring to mind tropical islands or Alpine towns. Today, England, the US and some European countries are replacing the more exotic Caribbean or Indian Ocean Islands as the tax havens of choice. On the Tax Secrecy index, the US state of Delaware is listed as the No. 1 offender by the Tax Justice Network. Delaware earns $700 million per year in company registration fees, a significant part of its budget.

Delaware is becoming the preferred location for organized crime figures and corrupt politicians worldwide. Despite complaints from federal law enforcement officials, congressional testimony, and reports from the Government Accountability Office, procedures in Delaware – and similar processes in other states – still let criminal groups infiltrate the corporate system. Professor Jason Sharman, an expert in offshore havens for the Centre for Governance and Public Policy at Griffith University in Australia agrees: “The US has been pretty robust in making sure that other countries live up to these standards, but they have been lax about applying the same degree of rigor to themselves. It’s nowhere near what the US has signed on to do,” he said. Delaware requires no information on actual ownership when companies fill out incorporating documents. Federal law enforcement agencies complain that this lack of identification makes it difficult at best for investigating suspected wrong-doing.

Criminals simply do not fear a legal crackdown. Hampered by offshore secrecy law enforcement especially in Eastern Europe has no talent working across international boundaries figuring out the real owners of companies cloaked in proxies.

Governments scrutinize the offshore industry and blame it for aiding criminals, but do little about fixing the problem. Organized crime has found common cause with business organizations to squash any efforts to radically change offshore laws. Some countries only pay lip service to efforts to provide greater transparency. Some keep on promising important actions and nothing else.

Numerous companies registered in Delaware by offshore businesses controlled by persons accused of organized criminal activities. For example:

  • Serbian fugitive Stanko Subotic registered the planes in Delaware that Italian prosecutors said were used to ferry stacks of illegally earned cash to banks in Cyprus and Liechtenstein. The money was earned, prosecutors say, from tobacco smuggling between the Montenegrin government and the Italian Sacra Corona Unita mafia group.
  • Fugitive Serbian drug lord Darko Saric, who allegedly tried to move 2.1 tons of cocaine from South America to Montenegro last year, registered many of his companies in Delaware where they are still active.
  • Marian Iancu, a Romanian businessmen charged with organizing a criminal group by Romania prosecutors, used Delaware based companies in his takeover of a state oil refinery through an alleged corrupt privatization and in its eventual resale to controversial Russian businessman Mikhail Chernoy.
  • And romanian offshore consultant Laszlo Gyorgy Kiss used Delaware companies to bill Petrom Service in consulting contracts for work that was never done.

Anonymous shell companies are behind so many crimes and misdemeanours that eliminating them should probably be “a no-brainer,” as a US district attorney recently put it. International law enforcement, justice officials and academics agree that knowing who really is reaping the benefits of offshore shell firms is crucial. Jurisdictions must have a way to find out who the really owns companies and a method to close loopholes that make shells operate, such as use of proxies or bearer shares. A major selling point of offshore registry companies, in fact, it that police can’t identify owners. Authorities basically have to ask information from the very people hiding it.We’re operating in this 19th Century manner, yet the money is moving in seconds. It’s long gone. Griffith University Professor Jason Sharman, who last year used Google and $20,000 to find and pay agents to set up anonymous shell companies in 17 jurisdictions, suggested regulating those agents. Sharman recommended that the US and Britain stipulate that agents not be allowed to set up companies unless they themselves know the actual owner and they keep records of that information. Sharman also suggested that the UK and US restrict non-residents from forming shell companies in their countries. “The most acute problem is non-residents setting up ostensibly respectable companies in these jurisdictions and doing crime around the world,” he said. “The great thing about US and British companies is that they look more respectable, and they’re more secret, so you get the best of both worlds. It might raise eyebrows to have a company from any small obscure island, but New York is respectable.” In fact, urisdictions such as Bermuda and the Cayman Islands require far more certified ID from anyone wanting to establish a company or bank account there than do the US states of Nevada and Wyoming, which at the time require no certified ID documents at all. Member countries of the Organization for Economic Co-Operation and Development (OECD), an international organization that has tried to push for laws to reduce the worst abuses of offshores, should get their own houses in order before pointing fingers at other countries. The OECD’s “white list” is maybe problematic?


Myths and Realities: How to Launder Money in the 21st Century

Money laundering is a massive global problem. It allows criminals to infuse trillions of dollars of black money into the stream of commerce and business, corrupting financial institutions and officials and at the end the complete economy. It can be stated that, at the beginning of the 21st century, not the banks are the number one targets of the laundries, but in addition to conquest of cyber space their “activities” spread more and more to the global world of general business life, where dozens of companies which are deemed to be unblemished, having seemingly honest business operations can always be found.

Those wanting launder money, always going one step forward in front of the authorities, through the most different money laundering techniques, more and more overlie the still unexploited legal economic opportunities – causing some trillion dollar damages to the world economy – and resulting from it the difference between legal and illegal economy gets smaller and smaller and presumably will be terminated with the time. Today, the laundries make often use of many forms of parallel banking systems. This is facilitated by the globalisation of economy, new internet techniques of virtual currencies and the inability of the authority to combat transnational constructs. In essence, it is inspired by the Knights Templar banking system of about 1000 years ago, with their currencies, transaction systems and fortresses.

The battle is continuous, but as it’s known, the mine of technical achievements and of human ingenuity seems to be everlasting, thus who knows what the future will bring. There are so many money laundering systems existing that it’s difficult to note all of them, but all of them have common features and practically they mean only the endless variations of the same theme: deception of identities and camouflage of money transactions.

Classical techniques of money laundering

In countries where the banking system is underdeveloped yet, the simplest solution is when the criminals take over the control of the given financial institution and realize through it their dirty transactions.

One of the oldest usual method of money laundering, of presentation as legal of illegal money is the purchase of art treasures and jewellery easy to transfer and of stable value. The laundry presents the art treasures and jewellery in question – or rather the money obtained for them – as if they were the estate not found earlier of a deceased relative of him. To avoid denunciation, it’s expedient to sell by public auction the purchased valuable movables and to keep the received coverage certificate. In case of professional laundries it may also happen that they buy themselves the art treasures and jewellery at the auction, and later they sell them again. By so doing the valuables remain and the certificates are also obtained. Although the costs of auction are lost, but a further advantage is that it’s even more difficult clear up the origin of money and the valuables can be sold at a higher price.

The technique of illegal money import is excellent for the initial making disappear of the traces, when the smuggler himself, eventually by making use of a messenger or by international transport brings physically the dirty money to a foreign country where the regulation of money market is less developed and/or the legislation prefers the banking secret. Thereafter, as a result of different financial transactions, the money is mixed with the money of legal origin. Disadvantage of this method is that cash is heavy, therefore is difficult to hide, and has the risk to be stolen or the smuggler gets caught at the customs examination.

One of the simplest methods is the technique of smurfing or nominal partnership. A team of couriers (smurf, nominal partner) places small amount deposits every day in always other financial institutions. All deposits are below the amount which would call the attention of the banks (value below report limit). When the money is drawn later on, the origin can be certified with the documents belonging to it.

To further avoiding of reporting financial transactions, respectively to obliterate the traces indicating them, the split or divided into parts money laundering method is applied. A high amount transaction is divided into many smaller amount transactions.

Many money laundering activities are connected to the gambling too. The laundries legalize their income through casinos in most of the cases. They buy tokens for cash in high amount with the aim to play, but they use only a small part of the tokens or they don’t use them not at all. Then they redeem them and ask for certificate about the “prize”. In case an authority is asking for the origin of the amount, the answer is that it’s originating from gambling. A more perfect method is when the laundries have their own casino. In this case the only to do is to record the dirty money as income of the casino

A primitive but functioning method is to agree with the casino owner in a less developed country about the certificate of a higher amount prize.

In addition to the casinos, the gambling prize can origin from lottery, horse-race or even greyhound racing, as well as from activities outside of betting agencies. In this circle the most traditional method is the buying of the wining ticket. In such a case the lucky winner gets even more money than the prize, from the laundry who obtains this way a fully “legal” income. The main point of the fraud related to horse, respectively greyhound racings is that the race is hustled then the bet is made with “dirty” money for all possible outcomes of the result.

One of the most ingenious solutions is probably the technique of overpayment on tax account. As a result of “incidental procedure error”, the private person or the company effects an overpayment of considerable amount to the competent tax office. Then after observation of the error – following filling in of a self-control form – the overpayment is retransferred by the tax office to the bank account of the “erring” tax payer, and the origin of money is already certified.

The point of self-financing loan (Dutch sandwich) is that the “client” places the dirty money in a foreign country or in a financial haven. After that he transfers the money to a bank in an other country, and then applies for a loan at his own bank, the guaranty, collateral being the deposited money. The bank grants the loan, which will be invested into properties, companies respectively into different financial instruments. In case of any suspicion arisen (e.g. sudden richness) the person concerned can refer without fear to the bank loan. This technique can exploit the different countries’ regulations concerning banking secret.

The point of the technique related to real estate is when the laundry takes mortgage for the real estate from and off-shore company being in his ownership, or rents real estate from an off-shore company, of which he is anonymous owner.

One of the members of the organisation buys for cash high value article (e.g. car or period piece) and sells within short time, but in the way that the buyer pays already with transfer to one or more legal bank accounts indicated by the seller.

Buying of gift vouchers as simple all-day buyer, several times, in several places, in average, usual denomination and amount. Thanks to the increasingly spreading franchise systems, these vouchers can be spent at more and more points of the world, or can be simply legally owned, kept.

Assuring real estate credit for an investor, who for some reason could get credit only with difficulties (e.g. the investment is too risky or bizarre, or simply because the investor has no durable contacts established yet with the financial institutions). Let’s presume that the loan amount would be EUR 70 million. At this point these “companies” organise a EUR 100 million credit, to be paid back in say 5 year time. The borrower is obliged to buy investment trust unit for EUR 30 million. This is immediately conveyed to the real estate company (to the loaner). About the 70 million a bank is providing security for a letter of credit in amount equal to full interest paid for 70 million, using the investment (real estate) as for pledge. Of course, to avoid risk, this is also conveyed to the real estate company. Result: the investor obtains the necessary amount (70 million), the real estate company gets investment trust unit in the value of EUR 30 million, guaranteed interest payment for the loan, and credit balance certificate if the borrower could not perform his payment obligation. In 5 years time white clean money will be available at zero risk.

Establishing fictitious business organisation – which can’t be found at its residence, the manager and members are presumably homeless or persons engaged for money – transfers arrive to its account, and these amounts are collected in cash buy a person who is not member, not officer of the company, or the money is transferred through a subcontractor network among each other with fictitious contracts, as long as the money becomes clean.

Fictitious transactions. Here not the object of purchase is fictitious, but its price is not covering the real market value. Let’s suppose we have EUR 100 million. Let’s buy for example a real estate for EUR 25 million and let’s look for a “buyer” for it who will buy it from us for 75 million with the passing of a certain time. This is of course not a genuine buyer, only such a “blameless” person who could really have that much money without any problem. At the sale and purchase not his 75 million will be received but the our one which we gave him in cash. The payment is effected already with bank transfer, so the amount arrives in a “legal” clean form to our account. It’s true that the earlier invested 25 million, the duty and tax to be paid and the fee of “assistance” paid to our “buyer” are to be booked as “loss”, but even so, more than the half of our money became white (in addition the state got its part too from this with the paid in duty and tax). This method can work also in the way that a higher amount of down payment is “paid” for the real estate to be purchased, but the sale and purchase fails for some reason, so the amount of down payment is lost, or we get back its double (it makes no difference as the person of seller and buyer is the same).

Creating a cover company, dealing with trade of antiques, among others. It’s buying up continuously antiques for cash, which are of average value, popular and relatively many of them passes through many hands. When the stock is available the company offers these for sale, divided among different auction houses country- and worldwide. If one of the lots comes under the hammer the person in question lets to sell it to the person offering the most, or sends in secret one of his people to the auction to buy it back. Independent from the buyer, beside the certificate the purchase price reduced by commission from all lots gets legally to the bank account (in case of own purchase even the article offered for sale is also remaining which can be sold again). The commission can be booked as cost of money laundering.

One of the most perfect ways of perpetration is when the dirty money is mixed with legal money. It’s “worth” pumping money into enterprises which are cash intensive branches, i.e. it’s normal to have high physical cash flow (e.g. restaurants, casinos, currency exchanges). When the type of enterprise is accepted, i.e. cash forms the higher portion of their income and so of their banking transactions, the dirty cash can be incorporated without any problem into the system. It’s very difficult to follow this type of transactions and to prove how many portions of dishes have really been served per occasion. As long as the dirty money is gradually fed into the system, the matter remains undoubtedly unseen. The criminals can apply this technique in case of already existing enterprises or can establish their own one. Indeed they can establish a totally fictitious company too, which has absolutely no activities except invoicing, i.e. is a laundry.

We acquire or establish two companies. One where money was acquired, the other where the money is to be placed. The company, to where the money is to be sent, orders certain goods or services. The trick is: either the invoices containing the products or services are overvalued (the surplus corresponds to the amount to be cleaned) or false invoices are sent. The first method is much more difficult to be disclosed. The paid amount can be deducted by the company which one settled the false or overvalued invoice.

The underworld organisation acquires – possibly fully or partly in cash – an uncared-for restaurant or any kind of service unit in line with its “scope”. The renovation, paid mostly also in cash, artificially increases the unit’s value. At this point they could get out from the business and could sell the newly started business (even with profit too) as the money becomes legal in their bank account after being transferred. But this can be further increased. The appliances, materials needed to start the business and the continuous daily wasting assets are purchased from a company belonging to the interest of the organisation. At each daily order, the delivered quantity is 20 – 30 percent less than effectively ordered on the documents (e.g.: in case of a restaurant only 40 kg meat instead of 50 kg). The organisation pumps dirty money into the enterprise to replace the shortage. The same happens in case of the other wasting assets too.

The money flown through the different bank accounts of the covering companies established in several countries, more and more legal “layers” are placed, making more difficult to identify the real origin of dirty money. Finally, the off-shore covering ventures invest the money into real estates and wait until they will be suitable to be sold. Completed hotels and apartment houses stand empty for years, waiting for the owners’ dirty money to get clean through termination.

The property acquired from crime is inserted in a legally established company, there it’s recorded as revenue. Both the revenue and expenditure booking data are forged, i.e. the “cleaned” money is covered with fictitious invoices.

Technique of over- or undercharge. Products or services are purchased at artificially high price (in this case the “profit” remains at the seller) or at artificially low price (in this case the “profit” remains at the buyer) from the money passed through several transactions.

Method of acquisition and selling of companies. From the layered money, the laundries acquire, including assets, a low value company having very little own property. Then the assets are revaluated, the company is sold and “legal” profit is realised.

Insertion of phony companies. The laundries acquire control of a company of which true owners’ identity is hidden for the authorities. Trading, financial transaction, forging of balance sheet loss/ profit, borrowings and exploitation of tax benefits are performed under the mask of this covering company.

Acquisition of sports club, respectively player. The buying and selling for several million dollars of professional sportsmen (mainly football players, ice-hockey players), called also slaves of modern age, among the different sports clubs offers excellent opportunities to legalise dirty money. These so called “showcase” companies are ventures which in classical meaning are not connected to the criminal groups, but practically are under inspection and control of the underworld.

By increasing of layering the origin of money becomes untraceable through crossing and covering operations, purchases, electronic transfers, frequent transfers, such as:

– Repeated buying and selling of bearer securities

– Repeated buying and selling of registered securities with involvement of owner

– Electronic there and back transfers among the same accounts

– Buying and selling of traveller’s cheques, air-tickets, banker’s drafts

– Commodity exchange contracts

These transactions are easier to perform when the laundries are infiltrated to the brokerage institutions, or the employees of those are corrupted, blackmailed.

Merchandise laundering: In addition to the techniques of money laundering it’s also worth to mention the merchandise laundering, being a process similar to money laundering. In this case the merchandise is cleaned, that is it’s sold and purchased out of the banking system, adding the most possible masking “layers” as long as the merchandise respectively money becomes fully clean.

The use of gold purchase for criminal purposes is one of the most effective mechanisms to clean illegal money. Its outstanding role is due to the fact that it can be used in many different ways, can be changed in several ways, and can materialize, respectively. promote all separate phases of money laundering. Whether in form of bar, fragments or jewellery, this precious metal is easy to buy, can be got through geographical borders and can be resold, i.e. money can be relatively easily legalised.

The barter trade system of commercial products such as agricultural commodities, other non-ferrous metals and precious stones offers also opportunities the revenues to be “legalised” this way, especially when all this is made in the legal export-import guise between different countries.

The dirty revenues from drugs laundered in the African barter trade are also to mention here, getting greater and greater role in the money laundering transactions of the world.

Secret banking systems

The more and more strict regulation of banking system leads to that the laundries are forced to find new possible channels outside of the banking system. As stronger the regulation the more demand for new alternatives. It has to be promptly noted that this change is highly touching the legal operating companies of business life too as from now on these are the potential targets for money laundering. The targeted companies are menaced, exploited or their control is overtaken simply by force. Any kind of products can be interesting for the criminals which can be purchased for cash in adequate volume and then can be easily sold.

The laundries also make often use of many forms of the parallel or underground banking systems. These non official, secret banking systems were developed by criminal groups mainly due to political chaos and distrust in banks. The organised (family, tribal) contact is typical for their operation. The purpose during their use is to avoid the financial regulations in force in the different countries in order to bring out the dirty and/or clean money from the country, respectively to settle the goods purchased abroad (capital flight). The system can only work properly when the countries concerned have commercial contacts which each other and the operations can be balanced with the time.

The simplest form was invented by the Chinese under the name fei chien i.e. flying money. The process works as follows: e.g. the dirty money is deposited in a gold shop in Hong Kong – for which the owner gets an overstamped dollar note or a small piece of paper or card marked with an innocent looking secret sign. Later on this is presented at a moneychanger in the Chinatown of an American city and the owner gets his cash which can be further covered through new transactions.

The essence of Hawalah network is the laundry to place money at a hawalah-banker somewhere in the world, which can be drawn few hours later -after deduction of commission – in an other part of the world (a very good sample is the case of India and the United Kingdom, where it’s the interest of the significant Indian population living in Great Britain to bring money grom the subcontinent to Europe). The system works as the market is two-directional. That is, there are persons in both countries who have large amounts of cash surplus (organised criminals) and who are ready to pay in a big way for the possibility to make use of a paper free banking system.

New money laundering possibilities offered by the digital money system and by the development of Internet

By development of the techniques at the beginning of the 21st century the laundries have nearly everything available to enter the “space” and by conquering newer and newer dimensions they continue undisturbed their dirty activities.

While the authorities still concentrate on the problem of “terrestrial” money laundering – first of all of off-shore financial centres -, the criminals are one step forward and they move and clean their money in the cyber space, i.e. online, with no little success.

To the greatest pleasure of the laundries, the “face to face”, respectively “know your client” principle gets more and more injured by the expansion of online. It is not in the power of the banks, economic units to know who is standing exactly behind the transaction (phone, computer). Who has the disposal of user name and the password belonging to it, can open bank account online; can order international business enterprises; can participate in different share trading models; can communicate via nameless e-mail; can diffuse money through online casinos and betting offices; can buy houses via Internet; can penetrate money through online auctions; can open his own off-shore or online bank, i.e. can do nearly everything.

The spreading of prepaid credit cards in the US and Russia also offers opportunity for anonymity. These can easily be bought without knowing the buyer’s identity. Moreover, certain criminal groups are just sending the filled cards per regular terrestrial mail and nobody can notice it.

It’s possible to play in the virtual casinos sites and online sport bet sites from any point of the world. Most of them operate as off-shore company of course. There are 2’900 legally registered sites and additional 20’000 sites without any gambling license. The organised crime is standing in the background in many cases. The money laundering trick is as follows. In order to play for “prize”, first a credit line is to be registered at the casino. Exploiting the lack of regulation, the most simple is to send average amount of cash. Some gambling is played and the rest of credit line is claimed in form of cheque or transfer. This method is however not very efficient since it implies transactions limits. More sophisticated methods in the contest of online gaming is to use the fact that online gaming licenses are only issued in countries known as off-shores heavens. Even legally operated online sites can be used as pretext to dissimulate a high volume of fictitious transactions between cover companies.

The possibility of opening online bank account and the banking and electronic payment systems operated through this terminate more and more the need of personal contact. Making use of the free and anonymous services offered by e-mail have access via the Internet to the letters and bank accounts of their own and of others (e.g. in Internet café or in public library). Thus they can create an e-mail possibility which will be then used only from public terminals, that means it’s nearly impossible to follow that kind of communication access and utilization. To cover their transactions, they use online channels, deemed to be legal, suitable for money transfer, as e.g. Liberty Reserve or E-Gold or Gold & Silver Reserve or … Let’s imagine that one of these groups can create false identities. Then he can open with them as much accounts as he wants, has access to them anytime and from anywhere in the world, i.e. can easily launder money through them. You can try yourself and create a false identitiy in Liberty Reserve: just register with a fake name and address – It works! Liberty Reserve SA is registered in Costa Rica. Notice that Costa Rica is also the pioneer country in online gambling.

There are many virtual currencies available: MoneyMail, LiqPay, UkrMoney, moneta.ru, Z-Payment, NN-Money, AlertPay, DeltaKey, LibertyReserve, Perfect Money, AlterGold, Pecunix, V-Money, Webcreds, W1 RUR, Edram, E-Gold, C-Gold, iMoney, E-bullion, InoCard, Chebo Money, ECUmoney, Express Gold, ICQMoney, IntellectMoney, VRS, Wirex, Dengi 2.0, Younicrata. You can transfer virtual currencies to any Exchanger having a business relation with the issuer of the virtual currency. Some of the Exchangers can pay out in cash or make transactions into a correspondence bank or through Western Union without limits. As example you can find a list of the Exchanger working with Liberty Reserve here http://www.libertyreserve.com/en/exchangers. Just try it – It works!

With the use of virtual money the bank regulation can be evaded and the criminals can launder illegal money. The registered users can perpetrate different transactions evading the SWIFT control for the money “issued” by the company. Some companies accept this virtual money for means of payment too, i.e. changes into official currency, thus it becomes available everywhere in the world and can be transferred to everywhere.

Geldwäsche: Immer neue Tricks

Korrupte Politiker, fintenreiche Finanzkriminelle: Die Jagd auf Geldwäscher ist anspruchsvoller denn je. Die internationalen Ermittler machen jetzt Druck auf die Banken – und auf die Schweiz.

Es sah aus wie ein ganz gewöhnliches Geschäftsessen. Die beiden Herren nahmen ihren Lunch im «Dolder Grand» in Zürich zu sich, und niemand hätte geahnt, dass es um ganz grosse Geschäfte ging – um Geldwäscherei. Ebenso wenig wäre Beobachtern der Szene im ­Januar 2004 in den Sinn gekommen, dass sich dort ein Politiker mit einem Tat­verdächtigen besprach: der serbische ­Innenminister Dusan Mihajlovic mit Stanko Subotic, dem mutmasslichen Drahtzieher einer Zigarettenschmuggler-Organisation.

Nach Ansicht des steinreichen Geschäftsmannes Subotic ist nicht er der Bösewicht, sondern Minister Mihajlovic. Subotic lebt heute in Genf, von dort aus orchestriert er seine Geschäfte. Legale ­Geschäfte, wie er sagt. In seinen Augen ist der Minister Teil einer kriminellen ­Organisation, die ihr Geld mit Erpressung mache. Er hat gegen Mihajlovic in Genf eine Strafanzeige eingereicht.

Die Geldwäschereibekämpfung ist kompliziert geworden, Gut und Böse sind nicht mehr einfach zu identifizieren. Während das Thema Geldwäsche in der Öffentlichkeit kaum noch grosse Erregung hervorruft, versinken die Ermittler in Fallakten über virtuelle oder reale Gangster-Netzwerke, Dossiers mit Tausenden verdächtigen Transaktionen, mit Klagen und Gegenklagen. Die Täter sind dabei den Fahndern wieder einmal eine Nasenlänge voraus – mit neuen Maschen und undurchdringlichen Strukturen. Und die Schweizer Behörden machen dabei – wieder einmal – keine gute Figur.

Er selbst sei unschuldig, sagt Stanko ­Subotic. Nach dem Lunch habe er im «Dolder» noch sieben Stunden mit dem Polizeiminister zusammengesessen. Mihajlovic habe ihm mit einem mysteriösen Grinsen ein neues Ermittler-Organigramm vorgelegt, auf dem wieder einmal sein Name zu finden war, aber auch «die wirklichen Zigarettenschmuggler, die mit dem Staat zusammenarbeiten». Darunter auch Marko Milosevic, der Sohn des ehemaligen serbischen Präsidenten. Subotics Version: Die herrschende politische Klasse will ihn mit Strafuntersuchungen erpressen, ihm sein Geschäft entreissen und es selbst weiterführen. Mit einer aufwendigen PR-Kampagne verbreitet er diese, seine Wahrheit.

Günther Hermann kann sich noch gut an Subotic erinnern. Ein Jahrzehnt lang hat der Zollfahnder aus dem deutschen Lindau die Zigi-Schmuggler-Mafia gejagt. Und immer wieder geisterte der Name Subotic durch die Akten – als Drahtzieher von Geldwäsche-Operationen. Was haben seine Ermittlungen gebracht? «Nichts, gar nichts», sagt Hermann heute, drei Jahre nach seiner Pensionierung, «es waren zehn Jahre sinnloser Arbeit.» Dass der Fall eine Nummer zu gross war, verstand Hermann nach einem Gespräch mit einem schwerkranken, inzwischen verstorbenen Schweizer Treuhänder. «Sie werden nie Erfolg haben», erklärte ihm der Mann, «das ist viel zu politisch.» Das Geschäft war von Oligarchen orchestriert worden, Ermittler Hermann konnte nur scheitern.

Rüge für die Schweiz. Seit 13 Jahren registriert die Schweizer Meldestelle MROS bei der Bundespolizei die Verdachtsmeldungen. In der Schweiz war das Thema in den Pionierjahren von einem hohen öffentlichen Interesse begleitet. Dann kam der Ermüdungseffekt. Heute ist das Regelsystem keineswegs in bester Verfassung, es agiert oftmals nur noch als mechanisches Meldesystem, ohne analytische Kompetenz und kriminalistisches Gespür. Mal wird gemeldet, mal nicht, und Gemeldetes bleibt oft ­folgenlos. Das Abwehrsystem erscheint schon jetzt zahnlos und steht bereits vor einer neuen Herausforderung: Künftig sollen, so wollen es die führenden Nationen, auch schwere Steuerkriminelle mit den Mitteln der Geldwäschereibekämpfung erfasst und verfolgt werden. Es ist kaum auszudenken, wie die Compliance Manager in den Schweizer Banken mit dieser Regelverschärfung umgehen wollen.

Mehrfach wurde die Schweiz in der Egmont-Gruppe, der Weltorganisation der Anti-Geldwäscher-Behörden, gerügt. Im Januar drohte ihr sogar der Rausschmiss aus der Organisation, weil sie ­innerhalb des Verbundes die einzige Meldestelle ist, die keine Finanzinformationen an ihre Partnerbehörden weitergibt. An der jüngsten Konferenz der Gruppe wurde sie nochmals verwarnt, ihr System in Ordnung zu bringen. So drängt auch Bundesanwalt Michael Lauber, die Sache nicht schleifen zu lassen: «Informationen über verdächtige Finanzflüsse sollten stärker als heute analysiert und ausgewertet werden können.» Er will ein Kompetenzzentrum einrichten.

Dem Schweizer Meldesystem fehlt vor allem die Kompetenz in Informationsbeschaffung, Recherche und Analyse. Das demonstriert zum Beispiel der russische Fall rund um den Hedge Fund Hermitage Capital Management, der auch die Credit Suisse belastet. Hermitage wurde vom ­libanesisch-brasilianischen Bankier Edmond Safra gegründet. Nachdem Safra im Dezember 1999 einem Brandanschlag in seinem Penthouse in Monte Carlo zum Opfer gefallen war, führte der Brite Bill Browder die Geschäfte weiter. Das Rezept: Investments in korrupte, unterbewertete Unternehmen tätigen und mit Hilfe von Untersuchungsbehörden und Medien Druck auf das Management aufbauen, um den Unternehmenswert zu steigern. Russland wurde zur Goldgrube für Hermitage. Bis CEO Browder 2006 «als Gefahr für die ­nationale Sicherheit» geächtet wurde, Moskau eine Strafuntersuchung wegen Steuerbetrugs und Geldwäsche begann und Browders Anwalt Sergei Magnitsky im November 2009 in einem Moskauer Gefängnis ums Leben kam.

Im Januar 2011 konterte Hermitage. Anwälte des Hedge Fund sandten der Bundesanwaltschaft eine Strafanzeige mit dem Vorwurf, die Ex-Chefin des zuständigen Moskauer Steueramtes habe mit Komplizen Firmenbeteiligungen von Hermitage im Wert von 230 Millionen Dollar gestohlen. Die Belege dazu: Credit-Suisse-Papiere zu Geldverschie­bungen und Immobilieninvestments in Dubai mit dem Namen der Steuerbeamtin. Russische Ermittler wiederum hegen den Verdacht, dass Hermitage-Leute das Vermögen verschwinden liessen. Wie auch immer, die Firmen jedenfalls sind neu registriert worden – in der autonomen Republik Tatarstan.

Fingierte Identitäten. Die Credit Suisse dementiert jegliches Fehlverhalten: «Wir sind überzeugt, dass unser Kontrollsystem wirksam ist.» Hermitage-Chef Browder erreichte schliesslich ein US-Gesetz, das russischen Beamten, die mit dem Fall betraut waren, die Einreise in die USA verweigert. Die Bundesanwaltschaft analysiert derzeit die Geldflüsse.

Noch komplizierter gestaltet sich ein Fall, der seine Wurzeln in den baltischen Staaten hat. Das Problem der Ermittler: Sie können keine Täter identifizieren. ­Zunächst entdeckten sie, dass in verschiedenen Transaktionen dieselben Kontoinhaber auftauchten – Briefkastenfirmen von London über Zypern bis ­Neuseeland. Dann versuchten sie den Mann ausfindig zu machen, der vielfach bei den Firmen als Direktor fungierte: Erik Vanagels. Sie fanden mehr als 300 Vanagels-Firmen, aber den Mann fanden sie nie. Nur so viel wissen sie: Vanagels ist ein Obdachloser, niemand von seinen Angehörigen weiss, ob er noch lebt.

Die Ermittler kamen einem virtuellen System von Briefkastenfirmen auf die Spur, die ihre Deals zumeist über Riga in Lettland abwickelten. Die Namen von Firmendirektoren waren gestohlen – ein Identitätsdiebstahl mit Pässen, die ahnungslose und mittellose Menschen ausgeliehen hatten. Das Vanagels-System wurde im Geldwäschermilieu zur Verfügung gestellt. «Das ist ein Full Service Provider», erklärt der Zürcher Experte Andrea Galli vom Ermittlungsunternehmen Scalaris, «das System funktioniert wie ein Geldwäsche-Supermarkt.» Benötigt wird im Prinzip nur eine Fälscherwerkstatt, die – auf Bestellung – ­liefert. Über das Vanagels-System wurden so unterschiedliche Deals abgewickelt wie Anlagebetrügereien in den USA, Immobilientricks in Moldau, Drogengeld­wäsche für mexikanische Kartelle, ­Waffenschmuggel nach Südsudan, Piraten-Websites in der Ukraine und der überteuerte Handel mit Impfstoffen gegen das Schweine-Virus, den man der früheren ukrainischen Premierministerin Julija Timoschenko vorwirft. In der Summe waren es rund zehn Milliarden Dollar, die gewaschen wurden. Die Ermittlungen laufen noch.

Das Versagen der Banken. Die Untersuchungsbehörden schenken den Bankhäusern nicht mehr so viel Vertrauen wie zu Beginn des Aufbaus der internen Kontrollsysteme. Sie haben gelernt, dass riesige Compliance-Abteilungen noch kein Garant dafür sind, dass sie auch funktionieren. So musste die Finma irritiert registrieren, dass die Geldhäuser immer noch Potentatengelder zuhauf bunkerten, obwohl die Schweizer Regeln als besonders scharf galten. So bestrafte die britische Finanzaufsicht im März die Coutts Bank, eine noble Tochter der Royal Bank of Scotland, wegen lascher Geldwäsche-Kontrollen. Zwielichtige Kunden aus den arabischen Aufruhrstaaten hatten über Coutts-Konten ihre Gelder ausser Landes gebracht. «Die Verfehlungen waren inakzeptabel», erklärte Tracey McDermott von der Financial Services Authority. Und durch eine Undercover-Operation deckten US-Drogenfahnder Ende 2011 auf, wie die Terrororganisation Hisbollah im ­grossen Stil Drogengelder über die Lebanese Canadian Bank gewaschen hat.

Die USA wollen die lasche Haltung der Banken nicht länger dulden. Am 17. Juli beschuldigte der US-Senat die britische Grossbank HSBC, jahrelang gewaltige Summen an Drogengeldern mexikanischer Kartelle gewaschen zu haben. Undercover-Agenten hatten den Untersuchungsausschuss auf die Spur gebracht. HSBC-Manager entschuldigten sich umgehend für ihr Versagen. Sie warten nun auf ihre Strafe. Der Ausschuss betonte: Die HSBC sei nur als Exempel herausgegriffen worden. Es könne auch andere Banken treffen.


Artikel aus bilanz.ch. Von:Leo Müller

Link zum Original

Erik Vanagels™ – the extent of a money laundering supermarket

The full extent of the money laundering international Vanagels Connection, reported in a previous story, is not known at present day. But according to our experience, Erik Vanagels – together with some colleagues such as Stan Gorin, Juri Vitman, Elmar Zallapa, Danny Banger, Lana Zamba and Inta Bilder – preside over a sprawling network of companies with Baltic bank accounts (mostly at Trasta Komercbank, Rietumu Bank, Parex Banka, Regional Investment Bank JSG) and banks in Moscow and Cyprus. They have extensive dealings with several East European countries like Ukraine, Moldavia, Romania and Russia, covering everything from illicit arms exports, internet piracy, oil/gas/electricity related corruption, financial frauds, counterfeit pharmaceutical products, massive cyber criminality, drug dealing… Some of their customers are also overseas like the Asiatic Hoa Le Duc’s Mafia or the Mexicam Sinaloa Drug Cartel.

The Vanagels Connection

The organizations operates as a full service provider of off-shore companies: Its modus operandi is systematically based on the simple concept of forging beneficial owner identity documents and signatures (for example the real Erik Vanagels, is a simple homeless in Riga) to nominate fictive directors in off-shore companies in UK, Cyprus, Panama, Hong-Kong, New Zeeland… and opening respective bank accounts in Latvia, Cyprus or Russia. Sometimes, the same forged identity is used in multiple variations: for example Erik Vanagels (the most famous one) can occur in the following aliases: Eric Vanagelom, Erik Vanahels, Erik Vanagele, Erik Vallaste, … It is already like a Trademark: a symbol of quality and price in the money laundering industry. But the same is also valid, for example, for the proxy names of Juri Vitman (alias Juri Wittmann), Stan Gorin (alias Staņislavs Gorins, in reality he is a simple insurance broker in Riga), Lana Zamba (in reality she is a yoga trainer in Limassol) or Danny Banger (alias Daniel Banger)… For more information about the identity of these mythical persons see “A Farm Of Directors” by Inga Springe and Graham Stack.

The network is organized with several hubs of off-shores supermarkets in Riga, London, Limassol, Kiev and Moscow (with some supect also in Sotschi, to stay olympic). For excample….

XXXXXX this part of the XXXXXXXXXXXX

In Cyprus at the villa near the cemetery of Limassol in KIMONOS STREET or at the suites of PTOLEMAION 55 also in Limassol. Their customers are segmented as following: oligarchs, organized criminal groups, rebels/terrorist groups, simple individuals with the need of laundering money for business purposes. The latter is the less evident, but it covers the majority of the hidden cases: it is used for systematic commercial bribery or frauds. The access to the services of this network is exclusively based on recommendations of existing customers.

The Vanagels connectio’s role is only coming to light recently as the Latvian and Ukraine local press starts digging out more and more information. The network’s activity can be traced back over a decade to the establishment in the mid-1990s. Evidence suggests this connection laundered money for an amount of 10 to 100 billion $ around the world and those media information are only the ones that have come to light so far. This will catapult the value of the Erik Vanagels™ tradmark higher than the one of Apple! The Vanagels connection has been recently quoted in the media related to the following major allegued criminal cases:

  1. The Faina vessel Case – Ukraine / Sudan – Illicit Arm Trading
  2. The Chernomoreneftegas Case – Ukraine – Gov. Corruption
  3. The flu vaccines Case – Ukraine – Gov. Corruption
  4. The Ukrspetseksport Case – Ukraine – Illicit Arm Trading
  5. The Rockford Funding Case – Latvia – Financial Fraud
  6. The Moldavian Cases – Moldavia / Romania – Gov. Corruption / Fraud
  7. The Hermitage Capital Management Case – Russia / Switzerland – Massive Money Laundering
  8. The Trade Construction Company LLC Case – Russia – Financial Fraud
  9. Hoa Le Duc’s Mafia Case – Romania / Vietnam / China – Organized Crime
  10. The EURO 2012 Case – Ukraine – Corruption
  11. The Mexicam Sinaloa Drug Cartel Case – Mexico – Organized Crime / Drug
  12. The GT Group Case – North Korea / Iran – Illicit Arm Trading / Terrorism financing
  13. The ex.ua file-exchange Case – Ukraine – Massive Internet Piracy
  14. The forextime.com Case – Russia / New Zeeland / Nigeria – Money Laundering / Financial Fraud


(Dr. Andrea Galli, Scalaris AG)