MONEY LAUNDERING THROUGH MERGERS, ACQUISITIONS AND SPINOFFS; NOT SO FAR-FETCHED AS YOU MIGHT THINK

In the world of M & A professionals, there is a school of thought which firmly believes that the inherent risk of money laundering through Mergers, Acquisitions & Spinoffs is low. They trot out these facts: (1) the illiquidity of the acquired assets, (2) the depth of the required financial due diligence, and (3) the complexity of the transactions, as proof positive that it won't happen to in their deals. Do not rely upon those principles to ignore conducting thorough Enhanced Due Diligence for AML purposes.

When I was a career money launderer, I found that some of my clients played the Long Game; that means their perspective was several years in the future. For example, one cannot simply acquire a massive shopping center with dirty money even if it has been artfully and completely cleaned, those clients looked way ahead in their financial planning, regarding how they were going to integrate their criminal proceeds into the legitimate economy. This means making professional connections, corrupting legitimate businessmen, planting the seeds of future transactions, and acting behind the scenes, and under the financial waterline, to insure that future actions will succeed.

Just as legitimate businessmen purchase listed companies as a back-door method of registration, without the requirement for their company to do so, laundrymen acting for criminal elements that have long-term objectives can plan ahead, and successfully mergers and acquisitions, notwithstanding the generally accepted thinking of M & A specialists that it cannot happen it cannot happen in their transactions. Money launderers can have M.BA. credentials, too, in addition to their law degrees, and they know how to use that knowledge in dark ways. Watch for them, please. for they may appear to look just like you.