When criminals profit from illicit activities, they usually need to “clean” or disguise the proceeds of their crimes. Money laundering disconnects illegally acquired funds from sources that include theft, drug trafficking and terrorism. This makes it harder for law enforcement to connect the dots, arrest the perpetrators and seize their money. Unfortunately, money launderers often use innocent small businesses to clean their dirty money. In some cases, businesses might be pressured to participate in money laundering. How can you keep your business safe from these criminal activities? 3 stages Money laundering generally involves three stages: Placement. Here, criminals introduce their illegally obtained funds into the economy, making them appear legitimate. Strategies could include separating large amounts into smaller ones and depositing them in multiple accounts, including offshore accounts. ...
