Liberia: FIU Identifies Korlane as Shell Company
The Financial Intelligence Unit of Liberia (FIU) has identified Korlane Investments Liberia Limited Liability Company, a Korean based institution as a high-risk money laundering shell company set up for what appears to be the sole purpose of laundering the proceeds of crimes generated through fraud, a predicate offense for Money Laundering.
The FIU, therefore, admonishes all financial, non-financial, and other institutions in Liberia to disengage or prohibit business relationships with the said company that is involved in laundering proceeds of crime, contrary to the Anti-Money Laundering and Terrorist Financing Act 2012.
The FIU’s designation of Korlane Investments Liberia Limited Liability Company comes after a preliminary investigation conducted by competent authorities found that Korlane Investment Liberia Limited Liability Company is a subsidiary company of Korlane Investments based in Cyprus that has not answered questions concerning its relationship with Korlane Liberia and source of funds.
Korean Investment Liberia Limited Liability Company has no known office space in Liberia nor does it have staffers.
Korean Investments Liberia Limited Liability Company acquired funds through card (Visa, Master, and Swift) fraud from owners in Ecuador and Slovakia; concealed and laundered the said funds into its local account domiciled at a commercial bank in Liberia.
Fraud alerts and queries were raised by both Visa and MasterCards after these questionable transactions were made on their users’ cards.
Interestingly, there is no revenue from the business activities that Korlane Investment Liberia Limited Liability Company proposed to undertake as per its Article of Incorporation filed with the Liberia Business Registry (LBR).
Also, there is no tax record at the Liberia Revenue Authority (LRA) from Korlane Investment Liberia Limited Liability Company on such accumulative huge inflows which occurred during just three months after its establishment.
One Patrick Herman Wahi, an Ivorian made claims to the said funds of Korlane Investment Liberia Limited Liability Company but has since disappeared upon invitation by Competent Authorities.
The investigation further reveals that from October 2021 when Korlane Investment Liberia Limited Liability Company was established up to December 12, 2021, a little over US$ 500,000.00 was transferred directly from Master and Visa Card holders’ members from Ecuador and Slovakia directly into the local account of Korlane Investment Liberia Limited Liability Company.
These activities by Korlane Investment Liberia Limited Liability contravene the law and such unlawful activities cannot be countenanced by the FIU.
The Financial Intelligence Unit of Liberia has since moved to freeze the account which contains the alleged proceeds of crime pending further legal actions against Korlane Investment Liberia Limited Liability Company, its parent company in Cyprus, and all responsible persons within the space of Korlane Investment Liberia Limited.
Given the foregoing and based on our AML/TF statutes, all commercial banks are therefore advised to take note and act accordingly as doing business with such designated company comes with accompanying sanctions and reputational Risk.
The FIU also recommends the revocation of the business registration certificate and license of Korlane Investment Liberia Limited Liability Company, a shell company.
The FIU intends to send a strong message that it will not provide space for businesses and individuals whose ultimate goal is to contaminate the Liberian financial system for personal gains.
Also, the FIU recognizes that in time past these shell and fraudulent businesses used the Liberia financial space without any punitive action. In this new Liberia, there will be no room or haven hence, no one should be mistaken that it will be “business as usual” without any punitive measures.
This designation should send a wake-up call to all whose ultimate goal is to enrich themselves to the detriment and reputational damage of Liberia.
Meanwhile, the Inter-Ministerial Committee convened a special meeting today chaired by the Intern Chairman, Samuel D. Tweah, Jr, Minister of Finance and Development Planning and Co-Chair, Frank Musa Dean, Minister of Justice, Attorney General of Liberia of the National Coordinating Committee (NCC) thus approving these actions of the FIU based on the overwhelming evidence and best interest of saving the reputation of the country and its financial system.