Prevention of money laundering is a matter of great importance. The term “money laundering” emerged in the United States in the last century. At the time, when a person wanted to give legitimacy to illegally obtained capital, they would literally wash it. With that, the bills looked aged.
This action helped bank robbers benefit from their crimes, for example. However, financial transactions (as well as crimes) have changed a lot in recent years.
Therefore, companies and governments need to be mindful of good practices to prevent money laundering – and all the negative consequences generated for the world economy. Read on and find out how to be cautious about the problem.
Crossing data across different systems helps authorities to spot suspicious movements. All this information is analyzed by software designed to identify fraud attempts.
While a different way of money laundering may emerge, these platforms can be reprogrammed until they identify new attempts at fraud. Therefore, it is critical that companies make use of management software to manage and store its data correctly. This control is an indispensable ally in the prevention of money laundering.
Some businesses can (unintentionally) contribute to money laundering. A bank that grants credit to its customers without proper control over their registration can be used for this practice, for example.
Therefore, all businesses must have a professional record of their customers and evaluate peculiar characteristics, such as whether they are Politically Exposed Persons (PEP). The concept is called Know your client (KYC).
There are countries that make businesses more vulnerable to the impacts of money laundering. If your company operates in these markets, you need to have an accounting and legal consultancy to understand the differences between the financial environments.
Money laundering prevention needs to include the training of professionals, as criminal groups benefit from the lack of knowledge of these people to act. Therefore, companies cannot restrict knowledge to managers or employees directly linked to the financial sectors.
It is important that everyone understands, even in a basic way, how to contribute to identifying the signs of money laundering. The purchasing sector, for example, can be trained to notice when suppliers act suspiciously.
As we have seen, money laundering prevention is a worldwide necessity. This criminal practice harms businesses and is capable of endangering the entire economy and markets, as its consequences frighten investors.
Technology is a great ally in the prevention of money laundering as it speeds up data analysis processes and makes businesses notice irregularities quickly.
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