Laundering allows criminals to transform illegally obtained gain into seemingly legitimate funds.Criminals want their illegal funds laundered because they can then move their money through society freely, without fear that the funds will be traced to their criminal deeds. In addition, laundering prevents the funds from being confiscated by the police.
Money laundering usually consists of three steps: placement, layering, and integration.
Globally, guidelines for anti money laundering came into prominence after the September 11, 2001 attacks and subsequent enactment of the USA PATRIOT ACT.
How to fight this crime?
The common defense against money laundering is PREVENTION, and how we do this, it's easy!! knowing our customers—KYC know your customer. Knowing one's customers, financial intermediaries will often be able to identify unusual or suspicious behavior, including false identities, unusual transactions, changing behaviour, or other indicators of laundering. But for institutions with millions of customers and thousands of customer-contact employees, traditional ways of knowing their customers must be supplemented by technology.
BEFORE CELEBRATE ANY KIND OF AGREEMENT WITH OUR FUTURE CUSTOMERS, WE NEED TO KNOW WHO THEY ARE!! WHAT THEY DO!!!!
