The financial services industry has made tremendous progress in money laundering detection and prevention during the last few years. However, they remain susceptible to abuse by criminal groups for laundering unlawfully acquired income and cash intended to fuel terrorist actions. In addition, the financial services industry will face reputational hazards, which might result in difficulty obtaining money at competitive rates and the loss of investor and consumer confidence, resulting in missed business opportunities.
Understanding the criteria of a money launderer listed in the Anti-Money Laundering Act (AMLA) would make it easier to detect launderers. But, it’s also important to understand the causes of money laundering to minimize laundering cases. Knowing the motives and methods behind money laundering, financial institutions can develop effective AML policies and procedures to prevent dirty money from entering the legitimate financial system. Moreover, understanding the causes of money laundering can help businesses identify potential red flags that may signal these illegal activities.
Continue reading: https://bit.ly/3tznDaD