An individual or entity holding ownership or controlling interest in a commercial enterprise, overseeing operations, finances, and strategic direction. Such owners may be sole proprietors, partners, or corporate shareholders.
Main/
Business Owner
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Code
AT0073
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Name
Business Owner
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Version
1.0
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Category
Customers, Clients & Private Individuals
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Created
2025-01-22
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Modified
2025-04-02
Related Techniques
Business owners may knowingly accept or encourage illicit investments to boost their enterprise’s capital base, effectively mingling legitimate and illegal funds. This complicates financial institutions’ transaction monitoring since the business appears to operate normally while serving as a vehicle for laundering criminal proceeds.
They exploit relief programs by:
- Inflating payroll figures or operational expenses to claim higher relief amounts.
- Submitting multiple applications for the same entity or related entities, diverting funds into business accounts.
These practices disguise the true financial situation of the business and expose financial institutions to fraudulent transactions.
Business owners, including undisclosed beneficial owners, knowingly use legitimate enterprises to integrate illicit capital by:
- Acquiring or establishing companies at manipulated valuations (overstated or understated purchase prices).
- Concealing true ownership structures to hinder financial institution due diligence.
- Submitting falsified financial information to secure or maintain business accounts, reducing visibility into the origin of funds.
Criminals may install themselves or associates as business owners of publicly traded companies by:
- Acquiring or controlling the entity’s operations or majority shareholdings.
- Orchestrating manipulative trades that artificially inflate share value.
Such maneuvers complicate financial institutions' detection of abnormal price movements tied to insiders acting with fraudulent motives.