In this expert session, Joras Ferwerda explores various methods used for money laundering and discusses their respective advantages and disadvantages. While discussing the use of cryptocurrencies like Bitcoin for illicit activities, he mentions that some individuals have already bought real estate using Bitcoins and that it could potentially become a more common practice in the future. However, Ferwerda also highlights the challenges involved, such as difficulties in transferring large amounts of Bitcoin and concerns from notaries and real estate agents regarding suspicious transactions.
Ferwerda then shifts the focus to traditional methods of money laundering, like opening a cash-only business, such as a bar or restaurant, to launder money. He acknowledges that this method has been used historically and could still be effective today, especially for smaller transactions. However, he also notes that it comes with the downside of having to pay taxes on the income earned.
The conversation then moves towards the subject of money laundering through art sales. Ferwerda explains how valuable paintings can be bought at auctions anonymously and sold for the same price while remaining anonymous. He acknowledges that dealing with unscrupulous people or "witwas experts" could pose a risk, and encourages researching legitimate ways to launder money through academic channels.
Ferwerda shares his extensive experience in the field of money laundering research, having published numerous papers on this topic over nearly 20 years. He also discusses the challenges of dealing with small amounts of money in relation to money laundering and criminal activities. He mentions the need for a network of people and tactics to move large sums of money across borders without raising suspicion.
As the conversation shifts, Ferwerda introduces the international war on drug money and its expansion from the United States to other parts of the world, specifically Africa. He explains that focusing on drugs themselves proved to be unsuccessful in the US, leading to a shift in focus towards financial flows associated with them. Ferwerda emphasizes the importance of preventing illicit funds from leaving African countries and keeping them within their economies for development.
Ferwerda concludes the session by encouraging professionals to remain vigilant when dealing with transactions involving large sums or complex assets like real estate. He shares various money laundering techniques used during real estate transactions, such as under-invoicing or over-invoicing, and emphasizes that notaries are in an ideal position to detect any suspicious activity related to property deals. He also provides resources for attendees to expand their knowledge on this topic.
Throughout the session, Ferwerda stresses that engaging in money laundering activities is illegal and encourages legal and ethical business practices. It's important to remember that this conversation is for informational purposes only and does not condone or encourage such behavior.
