The phrase relates to the illegal method of taking big amounts of cash from the proceeds of crime and making it look like the money has come from a legitimate source. This process essentially takes ‘dirty’ money and makes it ‘clean’ or ‘laundered’.
This is a serious crime, as the proceeds might come from activity such as terrorism or drug trafficking, for example. Businesses today must have robust anti money laundering processes so they can identify and avoid this illegal financial activity. To find out more about AML IDENTITY VERIFICATION, contact w2globaldata.com/regulatory-compliance-solutions-and-software/aml-id-checks/
There are a number of methods that criminals use to ‘launder’ money and unfortunately this has only been made easier with the rise of online banking and the increasing use of crypto currencies. This is why identity checks are so important. Money laundering is essential for criminal enterprises who wish to use their funds legitimately. Dealing with large amounts of cash is suspicious, dangerous and also not very efficient for criminals.
The way criminals attempt to do this, it normally involves three stages. The cash must be placed into the legitimate financial system initially. The money must then be moved through several transactions to create a ‘layering’ effect. Integration is the final step and this involves withdrawing the ‘laundered’ money from the legitimate source and then use the money for whatever the criminals want. The process doesn’t require all three stages or might involve one or two of the steps repeated several times.