Daily Black Immigrant News
Money launderers have targeted the hospitality industry in the Virgin Islands, the Financial Investigation Agency recently warned.
The agency’s Financial Investigation Unit issued a press release last month advising hotels, resorts and guesthouses to be on the lookout for fraudsters making fake reservations under the names of reputable individuals and businesses.
“They often pay for the reservation using a cashier’s check to the hotel or guesthouse’s bank account and then cancel and request a refund via email,” the release said.
After the check is cut, the cashier takes it to a bank.
The goal of fraud, the agency explained, is to hide funds obtained from illegal activity — for example, drug or human trafficking — and funnel them into the banking system, which would otherwise not accept the deposit.
“The hotel or inn would facilitate the refund by check, so the ill-gotten gains would then be deposited into a financial institution from an apparently legitimate source,” the agency said.
He added that any amount the hotel takes as a cancellation fee is repaid by the money launderer as a cost of doing business.
‘Money Again’
The scheme is a variation on the usual “money laundering” scheme that the FIA has previously warned about, in which the launderer gives money to an individual to deposit into a bank account or in exchange for the purchase of gift cards and other items in exchange for a small “commission” for carrying out the transaction.
Typically, the perpetrator asks for complete bank details and then asks the victim to transfer a percentage of the money to another account and keep the rest.
“Alternatively, there have also been cases of people being asked to buy gift cards, such as iTunes vouchers, in exchange for keeping a percentage of the money that was sent,” the FIA wrote in a warning issued in May. “These are all cases that the general public should be wary of.”
Sometimes these scams come under the guise of advertisements and legitimate employment opportunities, the agency noted. However, in most cases, the money transferred to the victim’s account was obtained illegally.
“Your actions and contribution to the scheme are enabling criminals to legitimize the money. Simply put, you are helping criminals move their funds,” the FIA warned. “This is a criminal offense under the laws of the Virgin Islands, even if you did not know where the money came from. In addition to criminal prosecution, you risk being blacklisted by the banks.”
Hard to distinguish
According to the agency, scams can be difficult to spot because the perpetrators at first look like legitimate customers.
“They can be very sophisticated and carried out by well-known people or businesses,” said May’s announcement. “The FIU is therefore reminding banks and hoteliers of their legal obligation to report any suspicious activity under penalty of law.”
The agency advised businesses that they can report money laundering schemes or any other suspicious activity by completing a suspicious activity report form at https://tinyurl.com/SAR-Form.
NewsAmericasNow.com
