Money laundering placement stage

To combat money launderers, businesses and companies must understand the processes that occur at every stage.The placement stage of money laundering is usually the first stage that occurs. This stage involves depositing illegal money into a financial institution.In the process of money laundering, criminals face many obstacles and must overcome vulnerabilities. They need to bypass due diligence procedures and be aware of your customer protocols, which is not an easy task.Key Points:The first stage of money laundering is known as placement.Money launderers have many ways to deposit illegal money into bank accounts.Know Your Customer (KYC) teams and Customer Due Diligence (CDD) efforts strive to identify beneficiaries and account owners, but this is not always easy.How does the placement stage of money laundering work?

At the money laundering phase, the money laundering has a large amount of money that, if deposited into the bank, warns analysts and is considered suspicious. After that, mandatory screening procedures such as careful customer examination and identity confirmation are performed.

Instead, the moneymakers divide the transaction into smaller and more manageable deposits that do not exceed the marking thresholds.  This allows them to make all the deposit they need secretly.

Once the problem overcomes this problem, criminals must create multiple accounts in several banks to prevent large deposits in a single location.  This may also make them attractive and suspicious.  With the opening of different accounts in more institutions, their map becomes more complex and more difficult to track.

Applicants screening

In response, anti -money laundering teams call for regulatory agencies to have customer identity identification protocols (KYCs) and Customer Customer Review (CDD) for customer screening in advance.  If this search provides information on any suspicious name or account, they will be automatically reported to the authorities.  If the account has no specific owner or is under the supervision of a third party representative, the customer identity identification team will continue to investigate.

Even if the search is negative and the account holder is not related to money laundering, the qualification teams go one step further.  From here, they are trying to find all the communications in the account to examine the relationships with the accounts in the monitoring list.

Authentication

Criminal accounts are often with fake names and identities that can make it difficult for the counter -money laundering regulators to find them.  It is the responsibility of identifying teams and careful customer examination to identify identities as real or unrealistic.  To examine this, the teams look at the documents presented at the time of the opening of the account.

Summary

It is clear that tracking money laundering is difficult.  Although many money laundering efforts are identified by warning signals and tracked patterns, not all of them.  Even with all the rules set by customer identity identification teams, illegal funds still find a way to enter the financial system.  With each identified location, executive organizations gain more knowledge and learn how to eliminate the problem that money laundering today.

Source: Academy of Economic Crime (FCA9)