Car Dealers: Do you know your KYC/AML obligations?, from WordPress.
On March 6th, John Frank Mussari Jr., the owner of a luxury car dealership was sentenced to 2 years in prison for money laundering.
Cars, especially luxury cars, are often used to launder money. Auto dealers routinely deal in transactions exceeding the AML regulatory limits, usually $10,000 or similar amount in Euros, Pounds or other local currency.
Mussari’s case is a very good example. Mussari owned a dealership specializing in Ferrari, Lamborghini and other luxury cars. Mussari developed a relationship with a “good client” who bought several sports cars from him. Over the course of this relationship, he was paid $132,000 for a Ferrari 360 Spyder, $147,000 for a Porsche 911 Turbo Cabriolet and $320,000 for two Lamborghini Gallardos, among others.