Anti Money Laundering

Money laundering is the practice of engaging in financial transactions in order to conceal the identity, source, and/or destination of money, in order to hide the proceeds of an illegal activity.  The goal of the money launderer is to make cash derived from an illegal activity into the financial system so that the transaction ultimate appears to be legal.

Sometimes you might feel that the Bank is asking too many questions about your transactions, your banking business and your personal finances.

It may be that you are performing an unusual transaction, for example when you intend to make a large deposit into an account or buy a large amount of foreign exchange, or you are just trying to open a bank account, rent a safety deposit box, open a custody account or you are simply a new customer. Additionally, the bank may also ask for several sources of identification. One of the reasons is to protect the bank from being used to faciliate money laundering.

Money Laundering may involve tax evasion, robbery, theft, false accounting, drug crimes and arms trading.

It encompasses any financial transaction which generates an asset or a value as the result of an illegal act. The illegal activity of money laundering is now recognized as potentially practiced by individuals, small and large businesses, corrupt officials, members of organized crime (such as drug dealers or the Mafia), and even corrupt states, through a complex network of shell companies and trusts to hide the source of the money or the identity of the person owning the money.

Note: Be sure to choose good business partners,Let’s suppose that you sell your car and obtain some money.  You go to the bank and you are expected to know the name of the person that you initially sold the car to. If you know that the buyer is doing something illegal, you should not sell it to that person and find someone else to buy your car.

Generally money laundering has 3 stages: placement, layering and integration. Learn more about money laundering basics and its stages:Money Laundering Works. If the answer to the questions made by your Bank appear to be satisfactory, there should be no problem in performing your desired transaction.