A negotiable instrument containing a written promise by one party to pay a specific sum of money to another party on demand or at a specified future date. Widely used in personal and commercial transactions for debt and credit arrangements.
Main/
Promissory Note
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Code
IN0057
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Name
Promissory Note
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Version
1.0
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Category
Trade & Commercial Instruments
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Created
2025-02-25
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Modified
2025-04-02
Related Techniques
- A formal promissory note serves as the official loan instrument that criminals establish or control.
- By structuring periodic repayments via payroll deductions, they systematically layer illicit funds into the note’s repayment schedule.
- Aligning repayments with normal pay cycles obscures suspicious early settlements or unexpectedly large installments, effectively disguising the illicit origin.
- Criminals create forged promissory notes to simulate legitimate debt instruments, disguising reciprocal transfers of unlawful funds as loan disbursements or repayments.
- These notes often omit verifiable collateral or reflect fraudulent lending terms, making it harder for financial institutions to spot irregularities.
- Backdating or forging promissory notes enables criminals to obscure the origin of funds and create an artificial paper trail of “debt” obligations, further frustrating investigations.
- Offenders fabricate entire promissory notes or tamper with key terms (e.g., principal, payee, due dates).
- These fraudulent obligations create a facade of legitimate liabilities or repayment streams, providing a cover for illicit transfers or layering efforts.