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A financial investigation is an enquiry into the origins, beneficiaries and movement of funds in relation to criminal conduct. They are critical in combating money laundering and terrorist financing as well as ensuring that crime doesn’t pay.
Hidden Assets
One of the most common reasons for conducting a financial investigation is to uncover hidden assets. Many people hide assets to avoid paying debts or to keep their wealth away from ex-partners. Hidden assets include cash, mutual funds, bearer municipal bonds, and valuables such as art and memorabilia. Using professional search methods, investigators can find most hidden assets.
Uncovering hidden assets is often accomplished by reviewing tax returns and checking bank accounts. Investigators typically start with the large banks and then work their way down to the small ones. Investigators may also check business registrations and public records.
Having hidden assets in business can negatively impact a company’s reputation and financial stability. For example, if a business fails to disclose the full value of its assets when raising capital, this can lead to investors and creditors losing confidence in the company. In addition, if the business is hiding assets to avoid paying taxes, it can face legal consequences.
Hidden assets in business can be intentional and used for nefarious purposes or unintentional and caused by mistakes or oversights in record-keeping or accounting practices. In either case, the key to finding hidden assets is diligence and thorough investigation. By following the money trail, investigators can uncover suspicious associates and stop criminal activity before it escalates into serious crimes such as drug trafficking, terrorism, and other organized crime.
Fraud and Identity Theft
In addition to helping clients find hidden assets, an investigator can also assist with a variety of other issues that may be related to fraud and identity theft. Some clear indicators of these issues include bills for goods and services that the client never received; calls from debt collectors regarding accounts that the client didn’t open; and bogus credit applications.
In these cases, an investigator can use a number of investigative techniques to track down these false documents and uncover the truth behind the matter. This includes a process called transaction analysis, which involves examining documents for signs of fraud and illegal activity. This can include a review of financial records, bank account statements, invoices, and contracts. In the case of identity theft, the investigator can check for discrepancies between the suspect’s physical and digital footprint, including biometric data such as fingerprints or face scans.
Following the money trail is one of the primary methods used in fighting terrorism and other criminal enterprises that rely on sham transactions to conceal their activities. A thorough investigation can also help companies settle property loss claims, shareholder disputes, and other similar matters.
Unpaid Debts
A financial investigator can help to uncover unpaid debts which are linked to illegal activities. This is an important step in the fight against serious and organised crime, as it deprives criminals of the resources that they need to carry out their illicit activity.
Financial investigations are an essential component of law enforcement efforts to combat money laundering, terrorist financing and other transnational organised crime. As such, they are included as part of the operational anti-money laundering and countering the financing of terrorism (AML/CFT) standards in the latest revision of FATF Recommendations.
It is expected that the integration of financial investigations and financial criminal analysis into AML/CFT investigations will lead to improved detection, prosecution and conviction rates for serious and organised crime cases. This will also enable law enforcement to more effectively target the flow of proceeds of crime, thereby making it less profitable and attractive for criminals to engage in serious and organised crime.
The best way to find out who owns a property is to check the Land Registry database for a small fee in England and Wales. However, this method is not foolproof and can be circumvented by obtaining a title deed for the property. In some situations, it is possible to obtain a list of outstanding debts from the individual concerned or their legal representative.
Business Transactions
A business transaction is any event that is measurable in terms of financial value and changes the financial position of a company. This change can be either quantitative or qualitative. It must also affect the balance sheet equation of a business, which is the sum of assets, liabilities, and owner’s equity.
A transaction can be classified as cash or credit-based depending on how the payment is made. The other types of business transactions are internal or external. Cash transactions are those that involve an exchange of values with a third party, whereas credit-based transactions include debits and credits that do not occur with any third parties. An example of a credit-based business transaction is paying interest on a loan.
Whether you need to know who’s behind a fraudulent investment, or need to determine where someone is hiding their money, an asset investigation can help. Investigators look into private and commercial properties, both domestic and offshore, as well as other physical items like cars, boats, art, and jewelry. A thorough investigation will also include all bank accounts, investments, trusts, pensions, shares, and overseas financial transactions or business interests.
In addition to uncovering hidden assets, an investigation can reveal other financial details that are important in criminal and civil matters. From proving fraud in a divorce case to securing the right amount of compensation for a client, an investigative firm will “follow the money” to show that crime doesn’t pay.