Money laundering being an offence in the UK is still difficult for businesses to detect when money laundering or fraud is about to occur.
One of the key tips in spotting the offense of money laundering and fraud is to be vigilant and conscious of the other signs possibly occurring.
Below are some key signs to help businesses spot when a client/customer is involved in money laundering or fraud crime;
- Unusual transactions or financial activity that seem out of character compared to other normal transactions
- Large cash deposits or bank balances with little or no firm justification of where the funds came from.
- Cashier’s checks or money orders purchased with large sums of cash.
- Dodging or defensiveness around financial information or details when asked for them.
- Disparities in information such as multiple or unverified identification documents.
- Complex financial transactions to confuse or throw investigators off the trail by hiding the source of the funds.
- Large sums of investment by third parties, with no explanation for the private funding.
- Multiple Accounts Under the Same Client
- Account Holders Belong to High-Risk Countries
Why Spotting Money Laundering and Fraud is Important for Businesses in the UK
The National Crime Agency (NCA) has reported that Money laundering costs the UK over £100 billion per year. Money laundering and fraud are usually connected to money acquired through criminal and possibly even terrorist activity. Being able to spot money laundering and fraud allows businesses to save the UK government from losing a huge amount of funds to money launders and fraudsters. It also becomes easier for businesses to recognize money laundering or fraud as it is happening.
Conclusion
With the rise of money laundering and fraud, the guidelines to combat financial crime may seem challenging, but simply knowing the red flags and implementing relevant processes to identify and combat money laundering and fraud is a business’s best defense.
You can contact us to find out more about anti-money laundering regulations in the UK and how you can remain compliant.
We provide other legal services ranging from company formation, intellectual property, family law, immigration, and a host of others in the Middle East, Africa, Asia, and India.
We at eLegal Consultants look forward to meeting you and are ready to journey with you to actualize your dreams. Contact us today.
