Investment and Commodity Advisors
Accounts for commodities
futures and options can be used for laundering. These include:
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Commodities: food, grains and metals are traded on exchanges, often using futures
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Commodity pools: combines funds from several members to allow them to trade
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Futures: contracts to buy or sell a commodity at a future date and set price
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Omnibus accounts: accounts held at a futures merchant on behalf of another merchant, the transactions for multiple customers are combined which obscures their identity
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Options: create the right but not the obligation to buy or sell a quantity of an item at a set price on or before an expiration date
Key risks:
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Withdrawing assets by transferring the proceeds to unrelated accounts or high-risk countries
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Custodial relationships that allow the client to remain anonymous
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Movement of funds to disguise the origin
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Investing illegal proceeds
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