Google Maps, initially designed for navigation, is actually a powerful tool in the fight against financial crime. Compliance teams can leverage its capabilities to enhance their AML processes, enabling them to verify addresses, assess business legitimacy, and detect suspicious activities linked to specific locations.
Its vast database of geographic information, real-time updates, and detailed street-level imagery make it an indispensable resource for identifying potential red flags and mitigating risk. By utilizing features such as satellite imagery, Street View, and user-generated content, compliance teams can cross-reference provided information with on-the-ground reality, ensuring accuracy and uncovering discrepancies that may indicate fraudulent activities. Additionally, the integration of geolocation insights with other AML tools allows for a more comprehensive approach to risk assessment and due diligence.
Step 1: Address verification
What: Ensure the accuracy and validity of customer-provided addresses during due diligence.
How:
- Search the provided address: Input the address into Google Maps and analyse the search results.
- Identify property type: Determine if the address corresponds to a residential property, a business, or an undeveloped land parcel.
- Look for inconsistencies: Compare the provided address with official documents or customer declarations.
- Flagging suspicious addresses: Watch for signs such as vacant lots, abandoned properties, or addresses tied to multiple unrelated businesses.
Why: Valid address verification helps prevent fraudulent entries and identify fictitious details commonly used in money laundering schemes. A discrepancy in the address details can trigger further investigation.
Step 2: Business legitimacy checks
What: Assess the authenticity and operational status of businesses.
How:
- Use Street View: Virtually inspect the business premises for signs of physical operations such as signage, customer activity, and office setup.
- Check business reviews and photos: Analyse customer feedback, images, and other details that validate the business’s legitimacy.
- Evaluate surrounding environment: Assess whether the business location aligns with its claimed operations (e.g., high-revenue businesses operating from small or nondescript locations).
- Investigate anomalies: Identify businesses operating in high-risk areas or inconsistencies in their claimed nature of operations.
Why: Shell companies and fraudulent entities often operate from virtual offices or dubious locations. Spotting these inconsistencies can prevent financial crime.
Step 3: Geolocation for risk assessment
What: Determine risk levels based on geographical factors.
How:
- Check location against risk databases: Cross-reference addresses with regions flagged by organisations such as the Financial Action Task Force (FATF).
- Identify high-risk jurisdictions: Recognize addresses in areas known for weak AML regulations, tax havens, or areas with high crime rates.
- Monitor cross-border activities: Analyse if the location has a history of involvement in illicit financial activities.
Why: Geographical analysis enables compliance teams to apply enhanced due diligence measures and identify potential money laundering risks linked to specific regions.
Step 4: Detecting shell companies and fraud
What: Identify companies that exist only on paper without legitimate operations.
How:
- Inspect the registered address: Look for evidence of a physical presence such as signage and business activity.
- Check for residential ties: Identify if the business is registered at a residential property or a virtual office.
- Cross-check with regulatory records: Validate business legitimacy with public registries and databases.
Why: Shell companies are often used in the layering stage of money laundering. Detecting them early helps prevent fraudulent transactions and regulatory breaches.
Step 5: Mapping network links
What: Uncover relationships between different entities and individuals.
How:
- Map multiple addresses: Analyse connections between various addresses provided by related individuals or businesses.
- Identify patterns: Look for clustering of businesses at a single address or connections that suggest collusion.
- Detect unusual proximity: Consider whether businesses or individuals with no apparent relationship are sharing an address.
Why: Network analysis can help uncover collusion, fraudulent activity, or organized financial crime networks.
Why you should use Google Maps in your AML due diligence
A basic address search can provide valuable insights that contribute significantly to the due diligence process. One of the key data points obtained through such a search is the property type, which indicates whether the address is categorized as residential, commercial, industrial, or undeveloped land. This classification helps institutions verify if the provided address aligns with the customer’s declared information. For instance, a business claiming to operate from a commercial space but being linked to a residential property might raise red flags requiring further investigation.
Another critical factor to consider is the surrounding area, which offers insights into nearby businesses and the general characteristics of the neighbourhood. Understanding the broader context of an address can help institutions assess whether the location is appropriate for the declared purpose. For example, an address situated in a primarily residential area might not be suitable for certain types of commercial operations, which could indicate inconsistencies in the information provided.
The business presence at the given address is another crucial aspect of due diligence. Address searches help verify whether a business is actually operating at the specified location, supporting claims of legitimacy. This verification is especially important in identifying shell companies or fraudulent entities that use false addresses to mislead regulatory authorities and financial institutions. Confirming an active and functional presence strengthens trust in the customer’s provided information.
In addition to verifying the physical existence of an address, street imagery offers a visual confirmation of the premises. By reviewing publicly available street views or satellite images, institutions can cross-check the provided details with the actual conditions on the ground. This step can reveal discrepancies, such as mismatched building appearances, empty lots where a business is supposedly located, or evidence suggesting a different purpose for the property than what was claimed.
Another essential insight derived from address searches is the detection of proximity patterns, which can identify potential links to known entities, such as businesses with ties to politically exposed persons (PEPs) or individuals flagged for financial crime risks. By analysing connections between addresses, you can uncover relationships that might indicate hidden risks, such as money laundering schemes, fraudulent networks, or conflicts of interest.
Collectively, these insights play a vital role in supporting AML compliance efforts. By leveraging property type classifications, surrounding area characteristics, business verification, visual confirmations, and proximity analysis, financial institutions and other regulated entities can enhance their ability to verify customer information, detect potential risks, and strengthen their overall due diligence procedures. This proactive approach can help mitigate compliance risks.
Google Maps is more than just a navigation tool—it serves as a critical asset in combating financial crime. When combined with other AML tools and investigative techniques, Google Maps helps financial institutions safeguard their integrity and comply with regulatory standards.
