How Does Money Laundering Process Work?

Money laundering is no more a hidden criterion. The increasing financial breach has made the concept of money laundering a common one. Every business and financial institution understands how AML compliance works in order to evade the risk of money laundering. Knowing this, they still know how programs and software are not immune to loopholes. 

Simply put, no matter how hard the authorities try, the money launderers usually stay a step ahead. Considering this possibility, many companies designed and developed effective AML software that can hinder the possibility of barging in. 




Irrespective of the fact that most people know about money laundering, certain sections are unaware of the ways that are used to launder huge amounts of money. 


Here are a few ways that are used to launder money from financial institutions and businesses-


  • Smurfing: Smurfing is a method that prevents reporting the transactions of authorized institutions. The process takes place within the scope of delivering constant or regular information and identification by conducting transactions under the legal limits of the country. 


  • Opening an Account With a Fake Name: Money launderers use this method the most. The process takes place by transporting the money from one account to another. Now, an account with a dark background is subject to quick identification. Keeping this in mind, the launderers take the help of a fictional account. 


  • Partnering in the Crime: Money launderers sometimes can be strictly restricted from entering the security boundaries of the institutions. This can force them to partner with financial institutions to conduct financial crimes. The companies that are involved and interested in laundering the dirty money get along with the accountants to wash off the records and stay safe to carry on the illicit activities. 


  • Benefitting From Multiple Companies: Money launderers sometimes find it hard to break into the safety grounds of financial institutions or companies. However, many launderers benefit from different companies, which include non-functional companies, legally operating companies, and shell corporations. 


  • Partnering with Foreign Financial Institutions: This method gives the money launderers access to cross-border centers and other foreign financial institutions. The cooperation between the launderers and the foreign financial institutions leads to successful money laundering. 


  • Cash Smuggling: Cash smuggling is one of the most common ways of laundering money today. Irrespective of the AML compliance program and AML software solutions, it is hard to ensure that there is no loophole left in the structured process. Cash smuggling is a popular and commonly used money laundering method. Here, the cash that is received from illegal activities is transferred to different countries that are free from legal obligations. 



The Final Words


AML compliance and software are the two most successful and effective solutions to money laundering. In the meantime, many companies have developed effective and convenient AML software like AML-TRACE that makes money laundering as rare as possible.


Get in touch with Smart Infotech to gather more information on money laundering and the effective AML-TRACE software.
Location: F9J7+V2Q - near Madinat Zayed Shopping Center - Madinat Zayed - Zone 1 - أبو ظبي - United Arab Emirates

Comments

Post a Comment

Popular posts from this blog

Importance of AML Screening Software For Businesses | SMART Infotech

Image
Politically Exposed Persons have to be identified & screened in companies as they pose many financial fraud risks. AML-TRACE performs PEP Screening , which helps you keep all such dangers at bay. PEPs are high-risk clients who have access to more potent opportunities than ordinary citizens to acquire assets via illegal means like money laundering & taking bribes. For the most effective AML compliance to become possible, it is crucial to identify PEPs & determine their risks. This is generally referred to as PEP list screening. Use of standardized data for AML name screening by AML-TRACE Complete & reliable electronic customer data records are the basis for effective PEP screening. Without accurate unique identification data, PEP screening will not serve its purpose. The eventual results arrived at based on this data will be irrelevant & inconsistent. Here, we lay out the minimum information that all companies need to keep a record of so that an effective PEP screeni
Read more

How to Save a Business From Financial Fraud?

Image
If nothing else, the present crisis has revealed that you can never be ‘too prepared’ for the worst. But what if we tell you that we have a solution that exceeds your expectations when it comes to minimizing your business’ financial risks? AML-TRACE is this solution. Featuring cutting-edge AI, it is an on-site and cloud-based anti-money laundering (AML) software that helps prevent financial crimes and counter-terrorism financing activities against businesses. These include exchange houses, insurance companies, DNFBPs like dealers in precious metals and stones, brokerage firms, real estate, legal firms, audit firms and other industries. Simply put, AML-TRACE help firms identify the potential risks of the entities or parties, with whom businesses conduct (or are planning to conduct) transactions. Benefits of using AML-TRACE:- It helps collect, maintain & analyze the KYC data.  It improves the management process of client onboarding. The software automates workflows within the organi
Read more

Sanctions Screening Software: A Vital Tool for Compliance in the UAE

Image
Sanctions screening software UAE is a tool that ensures businesses are avoiding illegal activities. Companies need to use sanctions screening software to prevent financial and legal consequences. In other words, this software is vital for compliance in the UAE. It helps businesses to operate within the law and maintain a good reputation. Many companies are turning to sanctions screening software to ensure compliance with these regulations. Why is Sanctions Screening Software Important in the UAE? Sanctions screening software is essential in the United Arab Emirates (UAE) because the country has strict laws. UAE has regulations on financial transactions and business dealings with individuals and entities. By using sanctions screening software, businesses in the UAE can ensure that they comply with these regulations. For example, suppose a business in the UAE would conduct a transaction with an individual or entity under sanctions. In that case, it could result in penalties, fines, or e
Read more