Investment and Commodity Advisors

Accounts for commodities futures and options can be used for laundering. These include:

  • Commodities: food, grains and metals are traded on exchanges, often using futures

  • Commodity pools: combines funds from several members to allow them to trade

  • Futures: contracts to buy or sell a commodity at a future date and set price

  • Omnibus accounts: accounts held at a futures merchant on behalf of another merchant, the transactions for multiple customers are combined which obscures their identity

  • 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:

  • Withdrawing assets by transferring the proceeds to unrelated accounts or high-risk countries

  • Custodial relationships that allow the client to remain anonymous

  • Movement of funds to disguise the origin

  • Investing illegal proceeds

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