Question

Suppose you need to prove a suspect’s illicit income circumstantially. Which of the following methods of tracing assets would yield the best result when the suspect is using his illicit funds to accumulate wealth and acquire assets, thus causing his net worth to increase?

A. The income correlation method
B. The bank deposits method
C. The expenditures method
D. The asset method

Answer 1

The asset method

Step-by-step explanation:

Illicit funds are defined as monies and capital that moves illegally accross different countries. The funds are illegally earned and transferred.

When a suspect is using illicit funds to acquire wealth and assets a way to trace this will be to use the asset method.

The asset method involves valuation of assets at market value. When the value of an individual's assets is far above his income we can conclude he is involved in illicit financing.