Anti-money laundering strategies should be of utmost importance to large-scale companies. Money laundering is a dangerous threat that affects individuals and businesses more frequently than you might think. In 2016, the IRS reported there were 1,201 money laundering investigations initiated, and 1,010 of those investigations were recommended for prosecution. Now, you may have a few questions on the topic and how to keep a company safe.

What is money laundering?

Money laundering can be defined as an attempt to obscure the origin of illegally obtained funds. It is also referred to as tax and bank fraud, which are terms you may be more familiar with.

Offenders often launder money in three stages:

  • Placement: the transferring of illegally obtained money to a source, such as a bank, that will disguise the funds as legitimate.
  • Layering: Using the funds to make transfers (transfer to different banks, making deposits and withdraws, purchasing high value items) so the money is difficult to trace.
  • Integration: Making a large transaction, such as an investment or sale of property, that will manipulate others into believing there’s no reason to question the origins of the funds.

Why is an anti-money laundering strategy important?

Money laundering can put a business in serious danger. It is not uncommon for this crime to go unnoticed for long periods of time. A strategy will keep you and your employees at ease knowing that their hard-earned money won’t go into the hands of thieves.

Your strategy should include training that will help familiarize you and your staff with warning signs and where to turn when suspicious behavior is noticed. A trusted source you can turn to do investigative work, when/if this crime happens, will be critical. Keeping an open dialogue with your employees will create a work environment that is transparent, so employers can come to work everyday trusting those around them (and vice versa). Enforcing this strategy will help each person understand threats and prevent them early on.

How to get started  

Turning to an outside source that is familiar with how money laundering occurs, can give professional advice on which strategy will work best for your business. You may have ideas on how to implement a workplace’s money laundering strategy, and that’s great! The Falcon Consulting Group wants to hear them and work with your team to recognize concerns and put them at ease.

Don’t hesitate. Now’s the time to put a sound strategy in place. If you have any questions, visit!