Funding Terrorism or Money Laundering

[lazerblue]

its a series about a drug dealer and one of his ways of cleaning the cash was through a beauty salon, worth a watch, waiting for the next series

 

[SWP's back]

If the heat is on then there's always a way around that using one of the UK jurisdiction tax haven British Virgin Isles, Bemuda and then back via Isle of Man or Jersey.

That doesn’t clean money per se as each bank still needs to confirm where the funds are from. What you’re describing is the middle part of money laundering, it’s called layering and helps disguise the origin.

The banks in question have been fined for not properly having processes in place to stop the first stage which is called placement.

The final phase is integration and that’s when the money is returned, all nice and clean to the naughty folk.

 

[Gareth Barry Conlon]

That doesn’t clean money per se as each bank still needs to confirm where the funds are from. What you’re describing is the middle part of money laundering, it’s called layering and helps disguise the origin.

The banks in question have been fined for not properly having processes in place to stop the first stage which is called placement.

The final phase is integration and that’s when the money is returned, all nice and clean to the naughty folk.

Someones been paying attention in AML training!

Using a cash business like a salon can cover all three in one go however it is fairly easy for the fuzz to get you. Disconnecting the various stages is the game for international cartels where they look to route the cash offshore and out of jurisdiction so your average copper is well out of his depth trying to piece it together. The same rules do get them though, you can't just wire money around the world anymore. Questions get asked, certain jurisdictions less rigorously than others and then you get financial centers that are built almost entirely around dirty money - see Cyprus.

 

[SWP's back]

Someones been paying attention in AML training!

Using a cash business like a salon can cover all three in one go however it is fairly easy for the fuzz to get you. Disconnecting the various stages is the game for international cartels where they look to route the cash offshore and out of jurisdiction so your average copper is well out of his depth trying to piece it together. The same rules do get them though, you can't just wire money around the world anymore. Questions get asked, certain jurisdictions less rigorously than others and then you get financial centers that are built almost entirely around dirty money - see Cyprus.

Yep, all very true.

As for the AML training, been doing the same exam each year for a decade and a half now. One of our smaller competitors got fined $1m for failing to get necessary AML proof a month or so ago (against a turnover of only around double that) so the board and compliance department have doubled down on it.