Money laundering is the act of collecting money through illegal activities and then trying to convert those funds into legitimate money so it can be used and not detected as being laundered. As a business it is important that you provide anti-money laundering training for your employees. There are AML, anti-money laundering controls that can be put in place to prevent money laundering. All you need to do is supply the training so your employees can execute those duties that are critical to successful AML. It doesn’t take a special position or person such as an accountant to be able to detect money laundering activity either. Once you understand what the red flags are, you’ll be able to effectively have your employees trained to expose any laundering.
What Tactics Can Prevent Money Laundering?
Since money laundering is a global problem it stands to reason it can have a massive impact on today’s society. The individuals that choose to launder money tend to be smart, well-resourced, and motivated to commit such a crime. As a business you can protect yourself with AML controls, regulations, and laws. The experts can provide you with the AML controls you need and have AML policies that reflect international and national regulations and laws. All you need to do is have your staff trained so you can stay on the front line and make sure those policies are appropriately applied.
How Can a Business Make Anti-Money Laundering Policies Work?
In order for anti-money laundering controls to work a company must be willing to convert their policies into practical systems such as monitoring and screening all transactions, due diligence, mitigation, risk assessment, and monitoring. This may include checking monetary instrument logs, currency transaction reports, searching for negative reports on clients, and monitoring official blacklists. All of the above must be handled in a discreet manner so a client that’s considered to be suspicious isn’t tipped off. There are actually three lines of defense; the frontline client-facing staff, the compliance and legal functions, and internal and external audit functions. You can start protecting yourself and your company today with the proper training.