An ABI Committee Newsletter
|
|
| Vol 22 Num 1 | March, 2026
|
|
|
by Bill Waldie, Alvarez & Marsal, New York
Rich Bunyan, Alvarez & Marsal, New York
Michael Shanahan, Alvarez & Marsal, Philadelphia
|
|
What do you do when you cannot follow the money any further? Traditional forensic accountants are highly skilled in tracing ill-gotten funds through voluminous bank records and other financial records, but bad actors often convert this cash into other assets that are more difficult to trace. Focusing only on traditional forensic accounting methods often leads to emptied bank accounts and dead ends. However, incorporating intelligence and asset-searching methods into forensic accounting service offerings during investigations, litigations and bankruptcy matters can further assist in recoveries and add significant value for both counsel and clients.
Money laundering is the concealment of ill-gotten proceeds to disguise their origin and shield them from recovery. Money laundering typically occurs in three stages: placement, layering and integration. In the placement
stage, the launderer introduces the fraudulent proceeds into the financial system, such as through a deposit. Once the funds have entered the financial system, the launderer layers the funds through one or more transactions or movements that distance the funds from their initial source. This may consist of transferring funds through various bank accounts controlled by the launderer. The final stage of money laundering is integration, during which the ill-gotten proceeds are reintroduced into the legitimate economy — often through converting the funds into other assets such as real estate, luxury items or business ventures.
Read Full Article Online →
|
|
|
©2026 American Bankruptcy Institute
All Rights Reserved
American Bankruptcy Institute
99 Canal Center Plaza
Suite 200
Alexandria, VA 22314
Email Preferences | View Online
|
|
|
|
|
.png)
