Danger for Swiss banks: Former money launderer reveals his tricks

Former money launderer now helps banks and authorities

This went well until Rijock was exposed. He was sentenced to four years in prison for money laundering and involvement in organized crime. During his time behind bars, he switched sides and began assisting law enforcement with money laundering investigations.

Today he also advises banks and the entire financial intermediation industry. It also gives conferences. Among other things, it will soon meet the Swiss audience. Compliance consultancy Aviolo managed to win him over for a virtual appearance in front of a Swiss audience on October 24 at 17:00. There he will provide information on money laundering methods.

Rijock said Swiss financial intermediaries should stop pretending that everything is fine. They need to act now because otherwise headlines about Swiss banks would be inevitable. As was the case following the attacks on the Twin Towers in New York in 2001, banks around the world were once again threatened with huge fines. For example, in Switzerland, the Geneva branch of HSBC bank came under fire for terrorist financing. But other Swiss banks have also discovered that they are not foolproof.

Terrorist funds laundered from Swiss banks

According to Rijock, this situation now poses a threat again. He says Hamas is active in drug and human trafficking. These funds will be laundered and deposited, among other things, in the Swiss financial center. This can be done without the banks noticing. Because they don’t fully know the money launderers’ methods or they don’t look closely enough.

To explain a possible money laundering process, Rijock needs to go into a little more detail: There are life insurance policies for key people in companies (like the CEO). If he got into a car accident, the company would have money to intervene, thanks to insurance. If the CEO retires, the insurance policy still exists. He could then pass it on to his family, but then he would quickly realize how high the premiums would be. This is why a secondary market has been created for such policies. The CEO can sell his policy there, but at a big discount. Those who purchase this policy will receive the insurance proceeds in case the CEO dies.

The identity of the buyers of these policies is not controlled very closely, so money can be laundered. If the recipients wanted to deposit the money in a bank, they would of course be asked where the funds came from. The recipient can then provide the name of the insurance company from which they received the money. These are good and clean addresses that will not raise many questions from bankers. The money has already been laundered.

Twenty ways to launder money

Rijock describes a total of twenty money laundering methods on his blog. Of course, this also includes the very popular and lucrative method of purchasing real estate. Money laundering expert Fabian Teichmann recently explained this to the “Handelszeitung” magazine “Millionaire”.

According to real estate agents, there are more fun methods. Rijock talks about the method regarding lotteries and other competitions. Money launderers will spread the word that they will purchase lottery winners’ winnings, including prizes. They buy lottery tickets from the winners and get clean money from the lottery company with the winning tickets.

Rijock also explains how country sanctions can be circumvented by purchasing citizenship. St. Kitts, Antigua and Barbuda, Dominica, St. In Caribbean countries such as Lucia and Grenada, citizenship can be obtained by investing certain amounts. The EU country Malta also has a “Citizenship by Investment Programme”.

These programs are a gift from heaven. They allowed owners to adopt an anonymous pseudonym and provide a place of birth that matched the country of the passport. It is also possible to change the date of birth, given the widespread corruption associated with these passport programs. In this way, a completely new identity can be created that will benefit the money launderer.

Beware of customers with Maltese passports

On his blog, Rijock talks about art and antiques, as well as money laundering in the film industry. The second one, for example, is very simple, stating that an expensive antique is found in the basement. Of course, it was previously purchased secretly and then officially sold to the most reputable person or institution that could legitimize the funds received.

Nowadays, it is difficult for banks to detect these methods because not enough attention is paid to them. But if authorities’ efforts are intensified following the attacks in Israel, it could lead to bad headlines for the Swiss financial centre.

For example, banks with customers who have Maltese passports urgently need to examine the issue more closely. Authorities there are taking action because of suspected links to Hamas. There is a large Arab community in Malta loyal to Hamas. It has long been suspected of financing terrorism, primarily using cryptocurrencies.

He also writes on his blog that Suha Arafat, the widow of Yasser Arafat, former head of the Palestine Liberation Organization (PLO), received a Maltese passport. Just like her daughter. Rijock claims that they are living off the millions that Yasser siphoned off from EU funds actually earmarked for the Palestinian people.