Investment vehicles that pool funds from multiple investors to invest in a diversified portfolio of assets. Managed by professional fund managers, these schemes include mutual funds, unit trusts, and closed-end funds, offering diversification and professional expertise.
Main/
Collective Investment Schemes
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Code
PS0126
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Name
Collective Investment Schemes
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Version
1.0
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Category
Wealth & Investment
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Created
2025-03-14
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Modified
2025-04-02
Related Techniques
- Aggregate funds from numerous investors, including criminal actors, into a shared investment portfolio, diluting indicators of illicit origins.
- Basic participant disclosures may not always reveal ultimate beneficial owners, allowing criminals to hide behind collective participation.
• Pooling illegitimate funds alongside legitimate investor capital in mutual funds or unit trusts conceals the total illicit sum. • Limited transparency on individual contributors or beneficiaries facilitates complicating the tracing of criminal proceeds.
- Pool money from numerous investors, complicating the tracing of individual contributions and masking illicit inflows within larger funds.
- Exploit schemes subject to weaker AML/CFT oversight, allowing criminals to blend dirty money with legitimate assets.
- Fraudsters brand illicit pools as legitimate group investments, using fresh capital to pay initial investors.
- Ponzi elements remain hidden under false promises of consistent returns, prompting unsuspecting participants to recruit more investors.
- The Ponzi arrangement is disguised as a pooled investment vehicle, where participant contributions are combined.
- Illicit funds are cycled along with new investor deposits to pay false returns, complicating detection of the original criminal proceeds.