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How to prevent money laundering; tips from our fraud solicitor
01 May 2023

If you are new to the world of business or are a bit more experienced, one thing you will want to prevent is the accusation of money laundering.

Money laundering is a serious financial crime. It involves concealing the proceeds of illegal activities as legitimate funds. Companies can unwittingly become involved in money laundering schemes, putting their reputation and financial stability at risk, especially when they are joining forces with other companies, as well as being negligent with their own checks.

If you find your business on the receiving end of a money laundering accusation, you will need to contact our team at ABV Solicitors. Our fraud solicitor will be able to defend your company in addition to recommending the best ways to prevent such an accusation in the future.

Fortunately, there are steps that companies can take to prevent money laundering from occurring within their business without needing to contact our fraud solicitor. Read on to learn what they are.

Conduct a risk assessment

The first step in preventing money laundering is to conduct a risk assessment of the business. This involves identifying the areas of the business that are most vulnerable to money laundering, such as customer due diligence, transaction monitoring, and reporting. By understanding the risks, companies can develop effective strategies to mitigate them.

If you aren’t sure how best to conduct a risk assessment, contact our fraud solicitor for advice.

Implement an anti-money laundering policy

Once the risks have been identified, companies should develop and implement an anti-money laundering policy. The policy should include procedures for customer due diligence, transaction monitoring, and reporting suspicious activity. The policy should also be reviewed regularly to ensure that it remains up-to-date and effective.

Train employees

Companies should ensure that their employees are trained to recognise and report suspicious activity. Employees should be trained on the company’s anti-money laundering policy, as well as how to identify and report suspicious transactions. Regular training should be provided to ensure that employees remain vigilant and up-to-date on the latest money laundering trends and techniques.

Conduct customer due diligence

Companies should conduct thorough due diligence on their customers to ensure that they are not involved in money laundering or other illegal activities. This includes verifying the customer’s identity, assessing the customer’s risk profile, and monitoring their transactions for suspicious activity.

Monitor transactions

Companies should monitor their transactions for suspicious activity, such as large cash deposits or withdrawals, transactions with high-risk countries, or transactions that are inconsistent with the customer’s profile. Transactions that are flagged as suspicious should be reported to the relevant authorities.

Keep records

Your company should keep detailed records of your customer due diligence, transaction monitoring, and reporting. These records should be kept for at least five years and should be available for inspection by the relevant authorities.

Conduct internal audits

Companies should conduct regular internal audits to ensure that their anti-money laundering policies and procedures are effective. The results of the audit should be reported to senior management and any necessary changes should be made.

Remember, our team at ABV Solicitors is available to discuss any fraud prevention options with you, so call us today.

The role of a fraud solicitor in defending financial crime

Types of money laundering explained by our fraud solicitor