Money laundering is a serious federal offense. According to the Customer Due Diligence Act, national banks are under a legal obligation to obtain sufficient information and develop a risk profile for their customers.
This means that businesses must also ensure they are free from any suspicious activity. If your firm participates in a money-laundering scheme, you may require an attorney to prove your innocence. Pleading ignorance is not necessarily enough. Continue reading to learn about some indications of money laundering in your business.
Unclear Identification
If you do business with a customer who is reluctant to give out their information, you need to be very careful with how you proceed. Do not transact with anyone who is overly secretive. Before entering a partnership with someone, ensure they provide all their information. If they use multiple tax IDs or identifying documents, this is also a red flag.
Strange Transfers of Money
Another red flag is when you notice money transactions that do not seem to make sense. If you work as an accountant for a firm, you should take note of any money that transfers to seemingly unprofitable sectors. If you notice a high turn-over rate of cash compared to similar businesses, this is also cause for suspicion.
Complex Firm Structures
Finally, if you work for a company and its business structure is overly complicated, this may be a sign of money laundering. Even large firms have clear organizational structures when they are legitimate.
Knowing that suspicious activity exists in your company can have legal consequences. Consult with a lawyer if you suspect your employer of money laundering. Doing nothing does not absolve you from potential punishments.