Money Laundering Risk in Shipbuilding Industry

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Why is the shipbuilding industry susceptible to money laundering according to the text?

Shipyards and customers are often located in different countries.

It requires large financial investments for shipbuilding projects.

Payments are commonly made partly in cash in this industry.

The industry involves complex transactions and multiple parties. (correct)

What factor in the shipbuilding industry could help launderers hide the origin of money?

International involvement with shipyards and customers in different countries. (correct)

Receiving government grants for shipbuilding projects.

Making payments partly in cash.

The high cost of shipbuilding projects.

Which aspect of the shipbuilding industry increases the risk of corruption and bribery?

Requiring large financial investments for projects.

Involvement of multiple parties in the industry.

Extensive financial interests and international nature. (correct)

Common practice of making payments in cash.

How do money launderers potentially use offshore companies and intermediaries in the shipbuilding industry?

To hide the origin of illegally obtained funds. Signup and view all the answers

What role do complex transactions play in enabling money launderers in the shipbuilding industry?

They help hide illicit funds through intricate processes. Signup and view all the answers

How does the international nature of the shipbuilding industry affect tracking financial flows?

It makes it more difficult to track funds and can allow laundering through international channels. Signup and view all the answers

Why is the construction industry susceptible to money laundering and corruption?

Large sums of money are involved in construction projects. Signup and view all the answers

What factor makes cash payments in the construction industry hard to track?

Common use of cash for smaller projects and subcontractor payments Signup and view all the answers

How does the link between construction and the real estate market contribute to money laundering?

It provides opportunities for illegal money investment in real estate. Signup and view all the answers

Why do infrastructure projects pose an increased risk of money laundering?

They create large cash flows and involve multiple parties. Signup and view all the answers

How does trust service providers' assistance contribute to the money laundering risk?

They help clients conduct business worldwide, including in high-risk countries. Signup and view all the answers

Which aspect of infrastructure projects can provide an opportunity for money launderers to hide illicit funds?

Involvement of multiple parties creating opportunities for false billing Signup and view all the answers

How can offshore structures contribute to the risk of money laundering in infrastructure projects?

By providing a way to hide financial flows across different jurisdictions Signup and view all the answers

What makes trusts an attractive tool for individuals involved in money laundering?

'Trusts can ensure privacy and anonymity, making it difficult to detect illicit financial flows. Signup and view all the answers

What was a major consequence of the Panama and Paradise Papers data breaches?

Revealed information on tax evasion and corruption activities. Signup and view all the answers

Why are trusts seen as an increased risk for money laundering compared to Western financial institutions?

Trusts have less strict regulations and reporting requirements. Signup and view all the answers

Money Laundering Risk in Shipbuilding Industry

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