If you are reading this, you are probably interested in finding out about money laundering and how you can stop your business becoming a victim of this illegal practice. Read on to find out how anti money laundering guidance could help you.
Why is money laundering such a problem?
You may not know that experts predict that between two and five per cent of our global economy is or has been involved in the practice of money laundering. This will equate to billions of pounds. This ‘dirty’ money has been through the laundering process somewhere in the world and been re-introduced into the normal economic market as ‘clean’ money. The criminals are therefore benefiting from their involvement but the paper trail of their funds look normal.
Where does the money come from?
Illicit funds are generated from serious and organised crime all over the world. It is very difficult to pin them down, as funds are derived from many different sources. The most common sources of ‘dirty’ money are terrorist funding, drug trafficking, prostitution, arms dealing, bribery and corruption, fraud and theft. There seems to be unlimited gains to be made from these types of criminal activity.
How does money laundering take place?
The process varies considerably in how and where it takes place, as the crime syndicates and terrorist cells have become increasingly sophisticated in recent years. The main process, however, takes place in three distinct phases:
- Placement – the proceeds from the various crimes are placed into the legitimate financial system
- Layering – the phase when the funds go through the ‘washing’ process (sometimes several times). This is to hide the owners’ identity and to mask the origin of the money
- Integration – the now ‘clean’ money is introduced back into the money market.
What can we do to stop money laundering?
Stopping this worldwide practice is very challenging for all countries and their governments. Our government has published its Money Laundering Regulations in an attempt to combat serious and organised crime in the UK. Using these and other related regulations, the aim is to decrease the incidents of money laundering by and through legitimate businesses (especially financial organisations). Some institutions are targeted and money laundered with their knowledge or suspicion, and others are in no way complicit, but are just being exploited.
The good news is that help is at hand. Money Laundering Compliance Limited is an organisation which can provide anti money laundering guidance and offer support to businesses in order to make them aware of money laundering and how to identify potential occurrences and protect themselves from being involved. Services include customer verification, training, compliance, consultancy and informative publications. The company is a member of the Business Tax Centre (BTC) group of companies and operated by well qualified and professional Accountancy, Business Law and Money Laundering Compliance personnel.