A new money laundering development has recently been identified using savings and loan associations enabling money to be channelled anonymously on an international scale.
Even though these savings and loan associations themselves are at present mostly based in Scandinavian countries, this is an international trend using accounts held with financial institutions in various countries. It is not unlikely that Belgian financial institutions will also come across this type of money laundering.
The modus operandi is described below, and a number of indicators that can point to money laundering by means of this system are listed as well.
The mechanism used is based on savings and loan associations comparable to savings banks that used to exist in Belgium. Such association is aimed at offering financial advantages to a limited number of members, often linked by commercial activities or common interests. For a small fee the savings and loan association provides certain banking services such as financial savings and mutual loans. Especially in rural areas and in the farming and fishing sectors these associations are very popular, mainly because of the low costs and the limited degree of administrative requirements.
Detailed report link: here