What are the 3 Recognised stages in money laundering?
There are usually two or three phases to the laundering: Placement. Layering. Integration / Extraction.
What is red flag money laundering?
The AML red flag indicators highlighted by the FATF include: If the client: Is secretive or evasive about who they are, the reason for the transaction, or the source of funds. Avoids personal contact without good reason. Refuses to provide information or documentation or the documentation provided is suspicious.
Why do money launderers use offshore accounts?
Criminals often use offshore accounts to hide money because they offer greater privacy, less regulation, and reduced taxation.
What is the most common form of money laundering?
One common form of money laundering is called smurfing (also known as “structuring”). This is where the criminal breaks up large chunks of cash into multiple small deposits, often spreading them over many different accounts, to avoid detection.
How can you tell if someone is money laundering?
Warning signs include repeated transactions in amounts just under $10,000 or by different people on the same day in one account, internal transfers between accounts followed by large outlays, and false social security numbers.
What is an example of laundering money?
But money laundering also occurs when someone buys a car with illegally acquired money, for example through tax evasion. Or when someone applies for a mortgage with false documents and buys a house with it. Any activity that involves using the proceeds of crime could be regarded as money laundering.
What evidence is needed for money laundering?
bank statements of your deposit amount (for mortgage buyers) bank statements of your cash amount (for cash buyers) further bank statements from past months/years to show how your money has built up over time. evidence of you selling a property (if using the funds to buy the new property)