Anti-Money Laundering Services Toronto: A Guide into Money Laundering

 Money laundering is one of the most practised forms of organized crimes. If you suspect or are a candidate for money laundering activities, it is important to learn about the process and how it works. This and working with anti-money laundering services Toronto will help you secure your business from money laundering activities.

What is money laundering?

This is the process of showing a source of money obtained through fraudulent activities as legal and regular income. Most payments from illegal businesses often come in cash and large amounts, making it hard to use them quickly and freely. Instead of depositing lump sums into a bank account, money laundering deposits this money in small bits. This helps criminals cover up their crimes.

Why is Money Washing Done?

Criminals go after two goals during money laundering. The first one is to move from the physical location used to make illegal money. This is because huge amounts of money in cash are easily traced and detected by local authorities. The second goal is to prevent the seizure of illegal funds for comfortable and safe use. For most criminal organizations, obtaining money is the main business. The proceeds of the crime are very important to these organizations as they keep them moving.

Money Laundering Methods Used Today

Different institutions use different techniques to launder money. This is why every business should have an anti-money laundering service Toronto to help them identify the loopholes. Some of these methods include:

Smurfing – This is the prevention of reporting of specific transactions to authorized institutions. That means there is no provided identification as the transactions are within the legal limit in the country.

Opening Accounts with fictitious names - The transactions under this record are fictitious or on behalf of someone else.

Anti-money laundering services Toronto can help identify trends and loopholes for money laundering in your institution. This ensures that you will not be of interest to the authorities and in case of enquiries, there is an explanation.