Businesses that offer secured loans to individuals using personal property as collateral. If the borrower repays the loan within the agreed timeframe, they can reclaim their item; otherwise, the shop may sell the item to recover the loan amount. These shops also often sell previously pawned merchandise and provide quick, short-term loans accessible to individuals with poor credit scores.
Main/
Pawn Shop Services
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Code
PS0061
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Name
Pawn Shop Services
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Version
1.0
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Category
Lending & Credit
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Created
2025-03-14
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Modified
2025-04-02
Related Techniques
- Criminals can repeatedly pawn and redeem jewelry at manipulated valuations, laundering proceeds by inflating or underreporting their worth.
- Minimal specialized valuation checks create opportunities to introduce illicit funds into the financial system under seemingly legitimate transactions.
- Criminals use counterfeit notes to purchase or redeem items of value from pawn shops.
- Inadequate detection methods allow fake currency to be exchanged for legitimate goods or cash, disguising illicit origins.