The act of money laundering is exactly what you would expect. It means to take dirty money, in other words, money that has been earned by illegal means, and make it clean so that it can be used in regular shops and businesses. In this way, the illegal money can enter the retail and commercial market. Once this happens, criminals are free to use the cash as it is impossible to trace it back to the original source. To stop this from happening, an AML ID CHECK, like those provided by www.w2globaldata.com/regulatory-compliance-solutions-and-software/aml-id-checks can be employed to make sure transactions are legitimate.
What are the main ways that the money can be laundered? One of the most common ways is to use the money as a deposit on a house and combine it with a mortgage or to buy it outright. Once this is completed, the house is sold, and the subsequent cash is clean.
Another way is to purchase a high-value item like a car or jewellery. As with the house, it’s soon sold or, in some blatant cases, the item is returned for a full refund. Whilst this may be for the same amount, the money is now clean and able to be used freely on the open market. Other options that are monitored are using the money for investments and securing loans. This is why financial services have to be vigilant in identifying possible cases where criminals might try their luck at laundering their illegal sources.
Leave a Reply