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4 Tips to Protect your Business from Money Laundering

January 11, 2022
4 Tips to Protect your Business from Money Laundering

Anti-Money Laundering (AML)

Anti-Money Laundering (AML) refers to the laws, regulations and procedures implemented to inhibit criminals from disguising illegally obtained funds as legitimate income. Money laundering is becoming progressively hard to detect and trace due to the evolution of technology and integration of economies among markets, which has led to more complex and less traceable methods. With the size and scope of money laundering globally, protecting your business from such is so important. We have compiled suggestions for combating money laundering activities.

1. Using Technology Detection

With the advancement of technology, you can use machine learning techniques to examine a series of complex transactions and find anomalies. Data technology can be used to detect false positives and conduct searches around the clock, flagging suspicious and irregular transactions for investigation. Explore some types of AML technology here

Did you know… Between $800 billion (2%) and $2 trillion (5%) of the world’s GDP is laundered worldwide in a year.


2. Cross-Communication with Regulators

Keep consistent communications with different parties, such as law enforcement, governments, regulators etc. Having an on-going discussion can keep all parties in the loop and up to date, confirm any suspicions, identify possible networks, and create a united front against money launderers.

Did you know… In 2019, the American State Department estimated that controlling money laundering succeeded by only 0.2 percent. 80 percent of the laundered 3.1 billion USD was seized from North America in 2009.


3. Staff Training

Ensure that you hire the right personnel when it comes to detecting fraudulent activity. It is essential to train employees to be aware of any suspicious activity and to take the relevant action when there is any evidence of fraud.

Did you know… The Canadian Solicitor General remarked that in 1998 the illegal assets created and washed in Canada annually were somewhere between $5 and $17 billion. This provides a stark contrast as Canada is one of the largest countries to follow and implant AML regulations against monetary fraud.


4. Report Suspicious Transactions

Be sure to report any suspicious activity that you come across. If you do discover that suspicious activity has occurred you can report it to the Financial Transactions and Reports Analysis Centre of Canada.

Did you know… Suspicious Activity Reports (SARs) lead to the blocking of about 31% of laundered money annually.


We highly recommend that you implement AML procedures and/or partner with reputable organizations who can conduct background checks on your behalf. To minimize the risk of money laundering, you must maintain constant vigilance.

At Thinking Capital, we take information security very seriously. We design our products and services with high-level security to ensure the greatest amount of protection for our clients. We encourage you to follow these tips and take the necessary steps to protect your business from money laundering.



Sources: 

Brennan, Shannon, and Roxan Vaillancourt. “Money Laundering in Canada, 2009.” Statistics Canada: Canada's National Statistical Agency / Statistique Canada : Organisme Statistique National Du Canada, 30 Nov. 2015, https://www150.statcan.gc.ca/n1/pub/85-005-x/2011001/article/11454-eng.htm. 


M., Jacob. “24 Fascinating Money Laundering Statistics You Need to Know in 2021.” Renolon, 3 Jan. 2022, https://www.renolon.com/money-laundering-statistics/. 


Raol, Jay. “50 Statistics on Money Laundering around the World.” Idmerit, 27 Nov. 2021, https://www.idmerit.com/blog/50-statistics-on-money-laundering-around-the-world/. 


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