Anti Money Laundering Laws
Money laundering is a huge challenge all over the world. This is the process through which illegally acquired moneys, or dirty cash, are made clean. There are many ways of doing this and they all rely on existing laws and accepted norms. For instance, someone who wants to clean cash can buy a stake in a restaurant. When going to deposit cash from the day’s sales, the management can add dirty money and bank the total. When calculating profits, the shareholder with the dirty money will get back clean cash minus taxes and other expenses.
Law enforcement authorities know all the dirty tricks that money launderers normally use, and have put in place measures to deal with law breakers. To enforce anti money laundering laws, frequent or daily reporting is required. Adherence to relevant laws and compliance checks are also necessary. Fortunately, there are many red flags that law enforcers can watch out for.