Money Laundering Activities
Money laundering activities are broader than transferring money between accounts. Most involve ordinary services being used for an unintended purpose.
Structuring. Breaking a large amount into smaller transactions to stay under reporting thresholds.
Using third parties. Having someone else conduct transactions, hold assets or appear as the customer.
Trade-based methods. Over-invoicing, under-invoicing, or invoicing for goods and services that never actually move anywhere.
Asset conversion. Buying property, vehicles, art or high-value goods and reselling them.
Corporate structures. Layers of companies and trusts, often across jurisdictions, that obscure who ultimately benefits from an asset.
Almost every one of these requires a legitimate business to be involved, usually without knowing it. That is precisely why the obligations fall on reporting entities across many sectors rather than only on banks.
AUSTRAC publishes guidance on typologies. This is general information rather than legal advice, and obligations vary by state and territory.
See Sentrient’s AML/CTF course and AML/CTF for professional services.
4 Ways to Identify Potential Money Laundering Activity
There are a range of indicators to help you identify potential money laundering activity, ranging from suspicious customer behaviour, international transactions, larger than normal transactions and suspicious transactions. The presence of a single indicator may not necessarily raise suspicion but could warrant further monitoring and examination. Multiple indicators are more likely to result in a […]
MOST POPULAR POSTS
