Preventing Financial Instrument Fraud - The Money Launderer's Tool


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Paul Renner is co-author of the 2002, ICC (International Chamber of Commerce) publication, “Preventing Financial Instrument Fraud – The Money Launderer’s Tool.” The fraud models described within the publication have been referenced by the UK City of London Police and prosecution services, to support their cases and secure convictions against fraudsters.

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Preventing Financial Instrument Fraud - The Money Launderer's Tool

  1. 1. “Preventing Financial Instrument Fraud – The Money Launder’s Tool”"Individuals and companies must be able to invest and do business withconfidence wherever they see the opportunity. The financial community,from international banks to small investors, must be aware of the pitfalls, the telltale signs that betray a fraud." Maria Livanos Cattaui Secretary General International Chamber of Commerce
  2. 2. Paul Renner is co-author of the 2002, ICC (International Chamber ofCommerce) publication, “Preventing Financial Instrument Fraud – TheMoney Launder’s Tool.” The fraud models described within the publicationhave been referenced by the UK City of London Police and prosecutionservices, to support their cases and secure convictions against fraudsters.The best way to understand how a Fraudster uses the financial/bankingsystem is to look at the scheme from their viewpoint.In “Preventing Financial Instrument Fraud – The Money Launder’sTool,” Paul Renner explains the following: How Fraudsters choose their victims and to how they set upthe investment program 7 things a Fraudster gets from your Bank Statement / Proof ofFunds Secure & Insecure Methods of having control or loss ofcontrol of funds Commission structure to Brokers, which help the Fraudster’sgoal. Use of Advisors including Bankers, Lawyers, Accountants,Insurance Brokers, Traders 10 techniques the Fraudster uses to protect him/herselfagainst prosecution and imprisonment 10 questions the Fraudster doesn’t want to hear you ask whenfiltering out investment offersThis unique reference book explains in simple language: the history behindthe scams; the psychology utilised; the methods; the documentation; thejargon; the marketing techniques; the money laundering processes and anumber of case studies showing the different approaches of the fraud.
  3. 3. “Money Laundering Tool”The Financial Instrument Fraud (FIF) Model section includesa Chart originally drafted by an undercover law enforcement officer toexplain the FIF scam. By analysing this chart you are able to identify themethods used by organised criminals to perpetuate the fraud. You learnhow the 3 parts of Money Laundering are used in the FinancialInstrument Fraud: Placement Layering IntegrationEvery day the ICC Commercial Crime Bureau (CCB) receives requestsfrom around the world, to examine and authenticate Financial Instruments.Now you will be able to compare the genuine from the fake.The Specimen Documents section shows you how to identify fact fromfiction. Examples taken from the files of the ICC CCB explain the incorrectand suspicious terms used in these Financial Instruments compared with areal Financial Instrument. These include: Genuine Letter of Credit compared to a Fake Letter of Credit Genuine Stand-by Letter of Credit compared to a Fake Stand-by Letter of Credit Genuine Guarantee issued by a Bank compared to a FakePrime Bank Guarantee (PBG)Other pages detail errors and “red flags” in Fake Certificates of Deposit,Non-Existent NCND Agreement, Fake Safe-Keeping Receipt, Fake Proofof Funds Letter, Fake Letter of Intent, Fake Promissory Note, Non-ExistentModified Form ICC No. 4081 and the Fake London Short Form Guarantee.
  4. 4. There are many Common Terms and Phrases used in FinancialInstrument Fraud. A checklist of more than 120 of these are included in aspecial Glossary section. Terms such as Collateral House, Fresh CutPaper, Grand Master, Master Collateral Commitment, Prime Bank Trading.The inclusion of these “red flags” in an investment contract may start aninvestigation proceeding by a regulatory agency such as the SEC, FSA, orState Securities Agencies.From USA & Canada to Europe & the Pacific Rim fraudulent schemes haveproliferated. 20 Case reports show the different way and means of partingvictims from their money. Reports include:Forged Bank Guarantees, Bank Debenture Programs, Advance Fee Fraud,Certificate of Deposit Fraud, Treasury Bill Leasing, Medium Term NotesFraud, Prime Bank Trading & High Yield Investment Programs (HYIP)A UK Law report further details a bank’s dilemma when caught in asuspected Financial Instrument Fraud (FIF)Over the last few years articles have appeared to try to explain andpromote the existence of Bank Trading Programs. In HookingVictims, one such article is reproduced. You are shown how somehistorical factual information has been weaved with incorrect statementsto portray a scheme that is hugely profitable as well as “risk free”.Comments have been added to show the inaccuracies and nonsense inthe Fraudster’s handiwork.By referring to the Resources & Contacts section you will save hours ofyour research time. Besides addresses and contact numbers you aregiven the weblinks so you can see what the SEC, US Treasury, FederalReserve, IMF, OCC, World Bank, Met Police and others really say aboutthese scams. Other links show you where to report your scam includingUSA, CANADA, Europe, Australia, and New Zealand
  5. 5. In the unfortunate event of being involved in a Financial Instrument Fraud,the Guide to Compiling Information section shows you the 6 keywords, which will help clarify your thoughts. These key words will helpwhen reporting your fraudulent scheme to the appropriate authorities.You will also learn that these schemes are not new. The Background toFinancial Instrument Fraud tells you about Gregor I, Cazique of Poyaisa/k/a Gregor Mac Gregor, 1786-1845, the earliest uncovered history of theinvention of a country in selling fraudulent financial instruments to thepublic. Also mentioned is Charles Ponzi, regarded as the “father” ofmodern fraudulent financial frauds.Who needs this unique book? Investors, investment advisors,stockbrokers, accountants, CPA’s, lawyers, bankers, life insurance agents,financial advisors, business owners, regulators, law enforcement as wellas anyone who would like to inform themselves of this mysterious subject.
  6. 6. About Paul Renner - KYCMap | C6 Intelligence Information SystemsLimitedPaul Renner is CEO of and the Co-Founder of C6Intelligence, a leading provider of global intelligence information on bothindividuals and companies through the C6 Database and bespokeresearch projects. C6 Intelligence provides Enhanced Due Diligence (EDD),Know Your Customer (KYC), and Anti-Money Laundering (AML) checksand solutions for companies worldwide, and has a presence in theAmericas, EMEA and APAC regions.SOURCE: Paul Renner C6 intelligence | KYCmap - Preventing FinancialInstrument Fraud