INTRODUCTION : PART ONE
The Three Stages in Money Laundering
Money Laundering is the process of taking ‘dirty’ funds and converting it into ‘clean’ funds.
‘Dirty funds’ are criminally-derived proceeds which are then converted into other assets so that they can be reintroduced into legitimate commerce in order to conceal their true origin or ownership – ‘clean funds’
Money laundering can’t happen without banks being involved somewhere within the three stages. Since they are our first line of defence against criminals, by having robust controls and access to accurate KYC data, banks will prevent many money laundering attempts. At the same time other KYC covered entities are required to check their clients against warning lists issued by governments and regulators.
There are three stages in money laundering:
To be continued…
From the desk of the Chief Risk Officer