Use of Nominees / Trustees / Family Member’s Accounts

Use of Nominees / Trustees / Family Member’s Accounts

As per news report, a Person ‘A’ allegedly involved in criminal activities and most notably in facilitating target killers, was got killed in May, 2015 in an encounter with the law enforcement agencies. Due to adverse media information, his and mother’s accounts (suspected to be beneficially owned by Person A) were reported to FMU.

Some connected accounts were also reported to FMU owing to huge movement of funds. Out of the different accounts reported to FMU, it was observed that one of the accounts was of person A’s mother Z, in which huge amount of funds were placed over a long time period.  Z’s account was opened as a photo account by the bank which requires personal presence of account holder for transactions in the account. Upon analysis of the statement of her account, it was revealed that huge amount of funds were credited in her account via 104 clearing cheques deposited in a single day. Interestingly, the cheques deposited in the account were of different amounts and drawn on various banks. No transaction in the account was subsequently noticed in the account for a long time. However, most of the funds were withdrawn from her account in the months of May and June, 2015. The withdrawals from her account were made via transfers and pay orders. The analysis of counterparts’ details revealed that most of the withdrawals from her account were made to make investments in properties.

FMU analysis, on the basis of transactions in A’s and Z’s accounts and counterparties details, was of the view that the accounts might have been used to route funds relating to criminal activities. FMU referred the matter to LEA for investigation with a view to help the LEA in identifying the people associated with person ‘A’ in his alleged criminal activities.