Money Laundering in Shipbuilding Industry

Large sums of money involved in construction projects = Attractive to money launderers seeking to integrate illegally obtained money Cash payments common in the industry = Difficult to track Closely linked to the real estate market = Used by money launderers to buy real estate or finance projects Increased risk of corruption due to size and parties involved = Increased risk of bribery

Significant investment and involvement of various parties = Creates large cash flows Complexity involving multiple parties = Provides opportunities for money launderers to hide illicit funds Increased risk of corruption and bribery = Helps bring illegally obtained money into the sector International involvement with different countries and financial institutions = Increases risk of cross-border money laundering activities

Known for helping clients in high-risk countries = Sometimes less strict laws and regulations than Western countries Include complex legal structures with multiple parties = Makes it difficult to identify ultimate beneficiaries and source of funds Cross-border in nature with assets located in different jurisdictions = Makes it difficult for law enforcement agencies to monitor and exchange information Not subject to same regulations as financial institutions = Allows money launderers to hide illicit financial flows without detection

Use of cash payments for smaller projects or subcontractors = Difficult to track Integration of illegally obtained money through real estate transactions = Linked to the real estate market Increased risk of corruption and bribery due to project size and parties involved = Attractive for government officials seeking bribes Increased risk related to infrastructure projects due to complexity and large cash flows = Opportunities for money laundering through false billing or ghost companies

Ensuring privacy and anonymity for clients = Reason for using trusts Cross-border nature with assets in different jurisdictions = Makes it difficult for law enforcement to monitor Not subject to same strict regulations as financial institutions = Allows hiding illicit financial flows without detection Helping clients do business anywhere in the world, including high-risk countries = Sometimes less strict laws and regulations than Western countries

Significant financial investments required = Facilitating large financial transactions Complexity involving multiple parties = Enabling hiding of illicit funds through complex transactions International involvement of the industry = Making it difficult to track financial flows Common practice of payments in cash = Potential for corruption and bribery

Shipyards = Participating in construction projects Suppliers = Providing materials and equipment Shipping companies = Involved in transporting finished products Intermediaries = Facilitating transactions and concealing money origin

Investment funds = Large financial investments may disappear into corrupt individuals' pockets Government grants = Funds may be used to conceal the origin of illicit money Other monies = May end up being mixed with illegally obtained funds through international channels Cash payments = Can help bring illicit funds into the industry

Complex transactions and offshore companies = Facilitating hiding of illicit funds International nature with customers in different countries = Difficulty in tracking financial flows and transactions Extensive financial interests = Increased risk of corruption and bribery Common practice of payments in cash = Opportunity for money launderers to blend illegally obtained funds

Illicit funds disappearing into corrupt individuals' pockets = Result of significant financial investments required Illicit funds hidden through international channels and jurisdictions = International involvement of shipyards and customers Corruption facilitating bringing illicit funds into the industry = Risk associated with extensive financial interests Hiding money origin through complex transactions and intermediaries = Consequence of complexity involving multiple parties

Payments made partly in cash = Enhancing opportunities for concealing illicit funds Common use of intermediaries = Facilitating transactions and concealing money origin Large financial transactions for construction projects = Potential risk for large funds to disappear into corrupt individuals' pockets Complexity involving multiple parties = Enabling hiding of illicit funds through complex transactions