Money Laundering Risks in Shipbuilding Industry

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Why is the construction industry susceptible to money laundering?

Use of ghost companies

Transparency in financial transactions

Large sums of money involved (correct)

Strict regulations and reporting requirements

Why are cash payments common in the construction industry?

Government incentives for using cash

Strict laws against cashless transactions

Large number of ATMs available on construction sites

Difficulty using the banking system in some countries (correct)

How can money launderers hide illicit funds in infrastructure projects?

By openly declaring all financial transactions

By promoting ethical business practices

Through transparency and accountability

Through false billing and over-billing (correct)

What is a key reason why infrastructure projects carry an increased risk of corruption?

Involvement of various parties and large cash flows Signup and view all the answers

Why are trusts often used by money launderers?

Ability to ensure privacy and anonymity Signup and view all the answers

How do infrastructure projects affect real estate values?

They can increase real estate values in the area Signup and view all the answers

What major data breaches revealed information about tax evasion and corruption?

The Panama and Paradise Papers Signup and view all the answers

Why are large infrastructure projects more susceptible to corruption?

Multiple parties involved creating opportunities for bribery Signup and view all the answers

What characteristic of the trust industry makes it a sensitive sector for money laundering?

Ability to hide illicit financial flows through complex legal structures Signup and view all the answers

What risk do international infrastructure projects pose in terms of financial monitoring?

Difficulty for law enforcement agencies due to cross-border assets and wealth Signup and view all the answers

Which of the following factors makes the shipbuilding industry susceptible to money laundering?

All of the above Signup and view all the answers

How can money launderers exploit the shipbuilding industry's complexity?

By using offshore companies and intermediaries to obscure the origin of funds Signup and view all the answers

Which of the following statements is NOT mentioned in the text as a factor contributing to money laundering in the shipbuilding industry?

The industry is highly regulated, making it difficult for money launderers to operate Signup and view all the answers

What role can corruption play in facilitating money laundering in the shipbuilding industry?

It can help money launderers bring illicit funds into the industry and facilitate transactions Signup and view all the answers

Based on the information provided in the text, which of the following steps could potentially help mitigate money laundering risks in the shipbuilding industry?

Implementing stricter regulations and oversight on financial transactions Signup and view all the answers

What is a potential consequence of the international involvement in the shipbuilding industry?

It makes it more difficult to track financial flows and transactions across jurisdictions Signup and view all the answers

Money Laundering Risks in Shipbuilding Industry

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