What are high risk industries for money laundering?

What are high risk industries for money laundering?

Cash-Intensive Businesses—Overview

• Convenience stores.
• Restaurants.
• Retail stores.
• Liquor stores.
• Cigarette distributors.
• Privately owned automated teller machines (ATM).
• Vending machine operators.
• Parking garages.

What are the money laundering risks to bank?

Negative publicity; damage to corporate reputation and loss of goodwill; legal and regulatory sanctions; an adverse effect on the bottom line – are all possible consequences of an organization’s failure to manage the risk of money laundering.

What factors should be taken into account when assessing the risk of money laundering?

What Are The Key Risk Indicators in Money Laundering?

• The nature and size of a business,
• Customer types,
• Types of products and services offered to customers,
• Method of hiring new customers and keeping in touch with existing customers.
• Geography risks.

When should I raise a SAR?

As soon as you know or suspect a person is engaged in money laundering or dealing with criminal property you must submit a SAR. You’ll need to decide whether you’ve formed a suspicion before you’re obliged to make a SAR. The threshold for suspicion is currently low.

Which group of banking products is the highest risk?

The banks will also want to know about the kind of transactions you’ll be processing. Card-present transactions are lowest in risk while card-not-present (CNP) transactions get progressively riskier. Subscriptions or recurring billing are considered some of the highest risk.

How do banks identify money laundering?

If banks suspect money laundering involving large sums of money, they must file reports on any illegal transactions. The reports come from a number of organizations that notify government officials of cash transfers that may include consumer theft, drug smuggling, organized crime, and other criminal activities.

What is a high risk customers AML?

Higher Risk Customers are those who are engaged in certain professions or avail the banking products and services where money laundering possibilities are high. Financial Institutions conduct enhanced due diligence (EDD) and ongoing monitoring for the higher risk customers.

When should you make a Suspicious Activity Report?

As soon as you ‘know’ or ‘suspect’ that a person is engaged in money laundering or dealing in criminal property, you must submit a SAR.

What is AML/CTF risk assessment?

Identifying and assessing the level of money laundering and terrorism financing (ML/TF) risk to your business or organisation is an important part of your AML/CTF program. It is the first thing you must do because it determines what measures you need to include in your program.

What are the ongoing customer due diligence procedures in AML/CTF?

Ongoing customer due diligence procedures: Part A of your AML/CTF program Part A of your AML/CTF program must include ongoing customer due diligence (OCDD) systems and controls to decide whether additional customer and beneficial owner information should be collected and verified on an ongoing basis.

What is KYC Part B in AML/CTF?

The customer identification procedures – know your customer (KYC) procedures – must be documented in Part B of your AML/CTF program. All AML/CTF programs must include a Part B program. To identify, mitigate and manage money laundering/terrorism financing (ML/TF) risk, you should develop ongoing customer due diligence processes.

Can a broker-dealer rely on another financial institution for AML compliance?

For example, in order for a broker-dealer to rely on the other financial institution the reliance must be reasonable. The other financial institution also must be subject to an AML compliance program rule and be regulated by a federal functional regulator.