AML/CFT Typologies: Modern Fraud Schemes, Money Mules, Drug Markets, and Terrorist Financing

Module 1. Introduction to AML/CFT Typologies

• Definition and role of typologies in the AML/CFT system
• Sources: FATF, EAG, APG, FinCEN Advisories, UNODC
• National AML/CFT specifics (results of country assessment)
• Connection of typologies with the risk-based approach
• Universal red flags of suspicious transactions:
• Unusual or inconsistent transactions
• Client profile mismatch
• Use of new technologies (crypto assets, fintech)

Module 2. Fraud and Money Mule Typologies

• Fraud schemes:
  Phishing and social engineering
  Credit fraud (including microloans)
  Fake charities
  Investment fraud (Ponzi, ICOs, Forex)

• Money mules:
  Use of students, migrants, vulnerable groups
  Transfers via personal bank accounts/cards
  Use of e-wallets and fintech apps

• Red flags:
  Mass account openings under one name
  Numerous small transfers from different regions
  Rapid cash withdrawals

Module 3. Drug-Related Typologies

• Methods of laundering drug proceeds:
  Smurfing and cash structuring
  Shell companies
  Cross-border money transfers
  Cryptocurrencies (darknet marketplaces, anonymity-enhanced coins)

• Red flags:
  Frequent transfers near high-risk drug regions
  Use of logistics companies as cover
  Accounts with atypical, illogical activity
  Case: Silk Road – darknet drug market (Bitcoin tracing as an investigative tool)

Module 4. Terrorist Financing Typologies

• Distinctive features of terrorist financing vs. classic ML
• Sources of funds:
  Legal income (donations, NGOs)
  Illegal activity (smuggling, extortion, drug trade)

• Methods:
  Hawala and informal systems
  NGOs and religious organizations
  Crypto fundraising campaigns (e.g., for terrorist groups)

• Red flags:
  Small donations from many individuals
  Transactions to high-risk regions (Syria, Iraq, Afghanistan)
  Use of prepaid cards
  Case: FinCEN Advisory on ISIL – fundraising via Telegram and crypto wallets

• Online training sessions
• Questions and answers​
• Presentations and recommendations from the trainer​
• Electronic training certificate

Nurlan Adaliev

An expert with internationally recognized experience in AML/CFT, blockchain analytics, and digital asset regulation.
He works in the AML/CFT Department of the Astana International Financial Centre (AIFC) and previously led divisions at the Financial Monitoring Agency of the Republic of Kazakhstan.

He holds several prestigious professional qualifications:

• • • • • • • CCAFCS — Certification in combating financial crime involving crypto-assets
            • Crystal Intelligence EVM Investigation — Expertise in blockchain and DeFi investigations
            • Included in the pool of international evaluators of EAG/FATF, contributing to the preparation for mutual evaluations of AML/CFT systems