There is nothing worse than spending several weeks preparing a client submission, and then turning the paperwork over to the trading entity - only to have the transaction declined straight away because the bank documents are found to be fraudulent.
Unfortunately, this is an all too common occurrence in our business. The problem, regrettably, is that there exists a deep-rooted "culture of deception" in many parts of the world: A belief system that disdains honesty and integrity, and advocates, instead, that the only "truth" that matters is what you can get away with. Also, just how pervasive is this attitude? Sadly, it permeates many of the transactions that regularly cross our desks.
Fortunately, though, there are things you can do - early on in the game - to filter out false bank documents to save you time and effort and increase your odds of bringing forward an actual transaction.
Remember this: The best strategy for countering deception is to ATTACK ON THE FACTS!
Put the burden on the client to prove his financial capability beyond a reasonable doubt. And not by making self-serving statements, but by providing objective, unassailable evidence to support his application.
So here is our preferred list of "FIGHT BACK!" tips:
Clients often claim to hold funds in a bank halfway around the world.
Not convinced? Then request the client provide the date he presented himself at the bank to open his account. Obtain that information first. JUST THAT. Then go back to the client and ask for a copy of his passport page which shows his entry visa/landing stamp permitting entry to the country on the date in question. It's a great "GOTCHA" technique!
Clients often claim that they purchased the bank instrument with their cash funds.
Not convinced? Then request a copy of the client's account statement immediately preceding his purchase of the bank instrument. SHOW ME THE MONEY!
Bank instruments that have been taken out of the banking system more than a month are worthless. Also, fraudulent bank instruments - well, they have probably never been put into the banking system in the first. So you should always request, with a copy of the bank instrument itself, a current tear sheet or account statement for the "paper account" holding the bank instrument. Viewing the bank instrument without the corresponding account statement or tear sheet, frankly, makes no sense at all.
Accept photo-quality scanned copies of the ORIGINAL bank documents only. If the client can't organize a high-resolution scan of his original bank documents, it probably means he doesn't control the bank instruments in the first place. So why go any further?
The client often claims that they acquired the cash funds/bank instruments through "inheritance."
Not convinced? Ask the client for a certified copy of the probate documents.
Clients often claim that the funds are freely transferable funds.
Not convinced? Then request the client withdraw $100 from his account and provide you with a copy of the withdrawal slip.
Clients often claim that they earned the cash funds/bank instruments through "investments."
Not convinced? Then request the client provide past account statements (or his passbook) showing the transaction activity (deposits and withdrawals) on his account over the two years.
One final word: Don't waste time having the client fill out an endless stream of compliance documents.
If the client has supplied fraudulent bank documents, it doesn't matter what the client provides by way of self-serving statements. Moreover, no client, upon being asked to complete a set of largely "fill-in-the-blanks"-style documents, is going to see the error of his ways and suddenly "fess up" to have committed bank fraud. So why bother! Our suggestion is to leave the documents for the time being. There is plenty of time for that later. Instead, focus your efforts, with laser beam intensity, on one thing - AND ONE THING ONLY: Corroborating the client's bank evidence of funds.