COREDO – EU Legal & Compliance Services Expert legal consulting, financial licensing (EMI, PSP, CASP under MiCA), and AML/CFT compliance across the European Union. Headquartered in Prague, we provide seamless regulatory solutions in Germany, Poland, Lithuania, and all 27 EU member states.
Nikita Veremeev
04.08.2025 | 6 min read
Updated: 14.10.2026
International anti-money laundering practices are built upon the understanding of three key stages: placement, layering, and integration. Each of these stages uses specific money laundering techniques, and schemes are becoming increasingly complex with technological advancement and heightened regulatory scrutiny.
Introduction of funds into the financial system - how does it work?
At this stage, illicit proceeds enter the legal financial circuit for the first time. Commonly used methods include:
- Cash transactions: Depositing large sums through cash-intensive businesses (restaurants, car washes, pawnshops), breaking down amounts into small tranches (transaction structuring or smurfing), and depositing cash via ATMs and terminals.
- Cash transportation: Courier delivery across borders, use of prepaid cards and anonymous payment tools.
COREDO's practice confirms that it is crucial to implement systems for detecting suspicious transactions and cash operations control during the placement stage. In several cases, the COREDO team assisted clients from the EU and Singapore in establishing automated monitoring, which helped identify attempts to split large sums and prevent further involvement of funds in laundering schemes.
Further actions for legalizing proceeds involve using multi-layered schemes - more about the layering stage in the next section.
Multi-layered schemes in Layering
In the second stage, layering: funds go through a series of complex operations to conceal their origin:
- International transfers through offshore companies (shell companies): Using complex corporate structures, registering companies abroad in low-transparency jurisdictions, hiding beneficial owners.
- Invoice fraud and trade financing: Creating fictitious contracts, inflating or deflating the value of goods and services, manipulating invoice fraud.
- Transaction structuring (smurfing): Splitting large sums into multiple smaller transfers through different accounts and countries.
Solutions implemented by COREDO for clients in the Czech Republic and Cyprus included comprehensive financial monitoring, enabling tracking of layering schemes through anomaly analysis in transaction structures and automatic reconciliation of information about beneficial owners.
What is the legalization of criminal proceeds?
At the integration stage, laundered funds return to the economy as legitimate income:
- Real estate investments: Purchasing luxury residential and commercial real estate, often through front structures or affiliated persons.
- Purchase of luxury items: Paintings, cars, antiques, jewelry.
- Integration of funds into legitimate business: Financing startups, acquiring stakes in companies, issuing loans.
COREDO's experience shows that at this stage, many international companies face corporate risks associated with the legalization of proceeds through real estate and luxury items. Implementing multi-level due diligence and real estate transaction analysis helps to identify and prevent such schemes.
Money Laundering Schemes in 2024–2025
Modern money laundering methods are becoming more technological and international. Over the past two years, the COREDO team has noted an increase in the use of digital currencies, trade financing, and legal schemes for fund withdrawal.
Money laundering through trade
Trade-Based Money Laundering (TBML): one of the most difficult methods to detect. Essence: manipulating contracts, invoices, and the value of goods in international trade:
- Invoice fraud: Inflating or deflating costs, fictitious deliveries, using layering to obscure traces.
- Manipulation with contracts and goods: Discrepancy between actual and declared volumes, delivery of non-existent goods.
In one of COREDO's cases, supporting a client from the EU, a TBML scheme was identified through the integration of automated invoice analysis and trade financing monitoring. This allowed preventing the legalization of a large sum through fictitious export operations.
Offshore and shell companies - what is it?
Shell companies, a classic tool for hiding beneficiaries and complicating corporate structures. Registering companies abroad in offshore jurisdictions allows for creating ownership chains, making financial monitoring and control challenging.
- Hidden beneficiaries: Using nominee directors, trust structures, corporate secretaries.
- Registration in countries with low transparency: Cyprus, Belize, BVI, Estonia.
The COREDO team has implemented projects to disclose beneficial owners for clients from the UK and Singapore using international databases and KYC automation. This approach not only complies with regulatory requirements in the EU and Asia but also minimizes corporate risks.
Money laundering through cryptocurrency: schemes
Since 2024, there has been a sharp increase in schemes related to money laundering through cryptocurrency:
- Anonymous transactions: Using mixers, P2P platforms, crypto cards.
- Cybercrime: Extortion, phishing, hacks followed by fund withdrawal through digital currencies.
- Monitoring automation: Modern AML tools allow blockchain analysis and detection of suspicious transfer chains.
Solutions developed at COREDO include blockchain analytics implementation and automation of crypto operations monitoring for clients in Dubai and Singapore. This approach ensures early detection of suspicious transactions and reduces the risk of legal liability.
Cash operations and prepaid cards
Despite the development of digital technologies, cash operations and prepaid card schemes remain relevant:
- Courier cash delivery: Cross-border transfers, division of sums.
- Anonymous payment tools: Prepaid cards, e-wallets without identification.
COREDO's experience shows that effective control of cash operations and limiting anonymous tools significantly reduces the risks of a company becoming involved in money laundering schemes.
Legalization of income through real estate
Real estate and luxury items remain a favorite way to integrate laundered funds:
- Investment in luxury real estate: Often through offshore structures or front persons.
- Purchase of art, cars, antiques: Complexity of valuation, high liquidity.
COREDO's practice confirms that thorough due diligence and analysis of real estate transactions allow for identifying attempts to legalize criminal proceeds at early stages.
Litigation schemes and fictitious lawsuits
In recent years, there has been an increase in the use of lawsuits as a tool for fund withdrawal:
- Fictitious debts and court rulings: Creating artificial obligations, recovering funds under fraudulent contracts.
- Legalization through court processes: Transferring funds based on foreign court decisions.
The COREDO team has supported investigations to identify such schemes in the EU, allowing to minimize risks for clients and ensuring legal protection of assets.
Industries vulnerable to money laundering in the EU, Asia, and CIS
Comprehensive analysis of corporate risks shows that no company operating in international markets is immune to involvement in money laundering schemes - particularly in industries with high cash turnover and complex payment structures.
Vulnerable industries and companies
- Restaurants, car washes, pawnshops: High cash turnover, complexity of control.
- Luxury goods trading: High value, low transparency of transactions.
- Offshore structures: Use of shell companies to hide beneficiaries.
- Charitable organizations: Weak control over funding sources.
The COREDO team regularly conducts due diligence for companies in these sectors, identifying corporate risks and developing individual AML strategies.
Regional differences and new challenges 2025
- Regulatory sandboxes and digital client identification: Regulatory sandboxes and digital KYC tools are actively implemented in Asia and the EU.
- International cooperation on AML: Strengthening information exchange between regulators, integrating OFAC and EU sanction lists.
- Increased transparency requirements: New FATF standards and local regulatory requirements demand the disclosure of beneficiaries and automation of due diligence.
COREDO's solutions for implementing AML policies in international business allow clients to effectively adapt to new challenges, minimizing risks and ensuring compliance with the requirements of different jurisdictions.
AML technologies: how to detect money laundering
The technological breakthrough of recent years has radically changed the approach to combating money laundering. Automation, artificial intelligence, and big data analytics are becoming key tools for effective AML.
Transaction monitoring and fraud detection
- Monitoring automation: Using algorithms for real-time transaction analysis, detecting anomalies and patterns characteristic of layering and smurfing schemes.
- Risk management in AML: Assessing risks by countries, counterparties, industries.
- Financial intelligence (FIU): Interaction with national and international bodies, filing SAR (Suspicious Activity Reports).
Solutions implemented by COREDO in Estonia and the UK allowed clients to automate the monitoring of suspicious operations, reducing the workload on compliance departments and improving the quality of financial control.
KYC/AML for international companies
- Digital client identification: Use of biometrics, electronic documents, global databases.
- Integration of AML into business processes: Implementing KYC and compliance control at all stages of working with clients and counterparties.
- Internal audit and control: Conducting regular checks, personnel training, due diligence automation.
COREDO's experience shows that the integration of KYC/AML into business processes without losing efficiency is possible only through proper automation and clear regulation of procedures.
In the context of tightening regulatory requirements, automation becomes a key element of successful AML policy implementation in international business. Next, we will look at how modern solutions based on artificial intelligence and machine learning transform AML and compliance control processes.
AI and machine learning in AML
- Financial flow analysis: AI systems detect anomalies, build client profiles, and predict risks.
- Detection of complex schemes: Machine learning allows identifying new money laundering methods, including layering and smurfing.
- Modern AML technologies: Use of cloud platforms, integration with international databases.
COREDO's solutions for integrating AI into AML processes have already proven their effectiveness in practice: automation enabled clients to identify schemes that previously remained unnoticed even during manual checks.
Liability for AML violations and sanctions
Violations of AML requirements lead not only to fines but also to criminal liability, account blocking, and inclusion in sanction lists.
Responsibility and fines for companies
- Criminal and administrative liability: In the EU and Asia, fines for AML violations reach tens of millions of euros, possible disqualification of management, and criminal prosecution.
- Long-term consequences for business: Loss of licenses, account blocking, inclusion in OFAC and EU sanction lists, reputational losses.
The COREDO team supports clients at all stages - from implementing AML policies to protecting interests in investigations and lawsuits.
AML check, how to prepare?
- Internal audit: Regular process checks, due diligence automation, preparation for regulatory inspections.
- Implementation of AML policies: Development and update of internal documents, personnel training, integration of new technologies.
- Preparation for regulatory inspection: Document collection, business process analysis, system stress testing.
Projects implemented by COREDO in the Czech Republic and Singapore showed that a systematic approach to preparing for AML checks minimizes risks and avoids sanctions.
How to protect business from money laundering
Based on years of experience, the COREDO team recommends:
- Implementing best AML practices: Use international FATF standards, regularly update internal policies.
- Developing risk management: Assess risks for each business area, implement an early warning system.
- Ensuring corporate transparency: Disclose beneficiaries, automate KYC and due diligence.
- Strengthening international cooperation: Use global databases, exchange information with partners and regulators.
- Integrating KYC and AML into all business processes: Automation and digitization of procedures - the key to efficiency and compliance.
Advice for international business
- AML is not just a regulatory requirement but a strategic tool for business protection.
- Combating money laundering requires a systematic approach: from technology implementation to continuous personnel training.
- Corporate risks can only be minimized under the conditions of transparency, automation, and regular internal audit.
- Use modern monitoring tools, artificial intelligence, and international standards to enhance AML effectiveness.
- Be proactive: timely integration of KYC and AML, preparation for inspections, and collaboration with COREDO experts are the keys to your business's sustainability on the international stage.
Methods of money laundering and their detection
| Money laundering method | Description/Example | Key business risks | Effective AML tools |
|---|---|---|---|
| Trade financing | Invoice fraud, layering | High | Transaction monitoring, AI, due diligence |
| Use of offshore companies | Shell companies, hidden beneficiaries | Medium | KYC, corporate transparency |
| Cryptocurrencies and digital assets | Anonymous transfers, crypto cards | Very high | Blockchain analytics, monitoring automation |
| Cash operations and prepaid cards | Courier delivery, anonymous cards | Medium | Cash operations control, limits, reporting |
| Legalization through real estate | Purchase of luxury real estate, luxury items | High | Transaction analysis, beneficiary control |
This article is not just a review but a practical guide based on COREDO's real expertise. If you are interested in protecting your business and finding reliable solutions, the COREDO team is ready to share its expertise and support you at every stage of international company development.