Several reasons should motivate you to make anti money laundering measures a priority, including increased legal scrutiny and the need to prevent the transfer of illicit funds to third parties. In many cases, money laundering is a form of fraud, and investigations can help identify stolen funds and cut off criminals from their profits. In addition, AML/CFT controls help to protect the integrity of financial markets and mitigate the effects of criminal economic activity. Find out more about AML IDENTITY VERIFICATION by visiting w2
Money laundering threatens legitimate businesses. Many drug trafficking organisations use banks to facilitate trade based money laundering. These organisations use fraudulent merchandise valuation to disguise illicit funds. They may also over-invoice or under-invoice shipments. Some also misrepresent the quality and quantity of the trade goods they ship. Once they obtain funds from illicit activity, these proceeds are often disguised and transferred to legitimate businesses.
In 1989, multiple countries formed the global Financial Action Task Force, an organisation of nations that focuses on combating money laundering and terrorist financing. Despite its broad mandate, the International Monetary Fund also takes anti money laundering measures seriously. The IMF’s mission is to help governments and businesses combat this problem. But how can you protect yourself?
To avoid such a situation, you should take steps to protect your company. One of the best ways to do this is to implement an effective anti-money laundering programme. AML policies, training, and technologies can help your organisation meet compliance requirements. Ultimately, they will help you instill confidence in your business operations and prevent fines. But, most importantly, you’ll be preventing the flow of illegal funds into the financial system.