Money laundering in Chile: expert explains three stages following Operation Tokyo
Following Operation Tokyo, accountancy expert Christian Nino-Moris warns of organised crime links with financial institutions in Chile.
How organised crime launders money in Chile according to an accountancy expert
According to biobiochile.cl, Operation Tokyo has revived concerns about the advance of organised crime in Chile and its capacity to launder money through public and private institutions.
Christian Nino-Moris, accountancy expert from Universidad Diego Portales, said that the case did not entirely surprise him. However, he did express concern about a possible connection with the banking entity involved. "We hope it is an isolated case," he stated, considering the historical prestige of Chilean banking.
The three stages of asset laundering
The specialist explained that money laundering operates in three phases: placement, layering and integration. Of the three, Nino-Moris highlighted integration as the most relevant stage of the process, as it is the phase in which resources manage to circulate with the appearance of legality within the formal economy, mixing legitimate operations with illicit ones and even meeting tax obligations.
The role of the detained bank executive
In the context of Operation Tokyo, Nino-Moris indicated that the detained bank executive would have acted as a "facilitator". This is because he used personal accounts and not necessarily accounts of the institution where he worked. The expert was emphatic in clarifying that "no one is guilty until justice determines otherwise".
Internal controls as key to prevention
Nino-Moris warned that, whilst laws and institutions exist aimed at combating asset laundering in the country, the true challenge lies with people and the internal control mechanisms of each company. To prevent similar situations from being repeated, the expert raised the need to strengthen recruitment and supervision processes, particularly in regulated sectors.
The expert acknowledged that Chile has "legal instruments and a national strategy" on the matter. Nevertheless, he warned that the detection of these offences depends to a large extent on citizen complaints and warning signs that organisations themselves can identify.
Source: Google News CL — Crime