February 2, 2016
An investigation involving secret video recordings of lawyers meeting the representative of a supposed corrupt African minister shows how easy it is to launder ill-gotten gains through the United States.
Global Witness, an independent anti-corruption organization, recorded meetings between the ostensible minister’s representative and 13 New York lawyers to discuss how the minister could move money out of his West African country through front companies.
We deliberately posed as someone designed to raise red flags for money laundering,” Global Witness explained on its website Monday. “We said we needed to get the money into the US without detection.”
The result? Only one of the 13 lawyers was not willing to help. The others, Global Witness said, were receptive and suggested to the fake official that he create anonymous front companies in the United States to move his funds. “Well, you’d set up a Delaware corporation that owns the real estate,” said one of the lawyers.
Delaware is one of a number of states that allow people to set up front and shell companies that hide the identity of the ultimate beneficiary of the company.