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Jul 1, 2024 · Put simply, a money mule lets someone else use their bank account to transfer illicit cash. This dirty money is often gained via horrifying operations, from online fraud and drug dealing to human trafficking. Nearly two thirds of bank accounts indicating mule behaviour in 2023 belonged to people aged under 30, according to fraud prevention ...
- The foreign lover. You meet someone online who lives at a distance (maybe even another country), but they seem wonderful, and the two of you hit it off really quickly.
- The fake shipping scam. You respond to an online job ad offering an easy job of re-packing or forwarding packages. You are asked to pay the postage or forwarding fees out-of-pocket, while the company then provides you with a fake “reimbursement” or “earnings” check.
- Prize or lottery winnings. You’re informed out of nowhere that you’ve won a prize or foreign lottery. All you have to do is wire money to “insure” the prize, improve your odds of winning a sweepstakes, or pay “shipping & handling fees.”
Oct 19, 2023 · Fraud currently accounts for 40% of all crime. The ease with which fraudsters cash out the proceeds through mule accounts continues to be a problem. Our review focused on the systems and controls for detecting and preventing money mule activity in firms that operate payment accounts. This evaluation included firms’ controls during onboarding ...
Mar 1, 2024 · Cifas estimates that there were 37,000 bank accounts which demonstrated behaviour associated with muling in 2023. Approximately £10 billion of illegal money is laundered each year in the UK ...
- Common Warning Signs
- Legal Services at High Risk
- Responding to Warning Signs
- Preventing Money Laundering
- Before You Report
Unusual and secretive clients
It’s important that you make fully informed and risk-based decisions on new clients and new types of business from both new and existing clients. To help assess the risk posed by new clients, you should try to understand why they chose your firm. For example: 1. why is a client who lives far from your firm contacting you in relation to a retainer which has no geographic connection to your firm? 2. why is a client instructing you in a field or type of work you have not practised in before? 3....
Unusual transactions
Clients trying to launder funds will often try to carry out unusual transactions. The transaction may be unusual for: 1. your firm 2. your understanding of a client in their position 3. the type of retainer they’re undertaking This may not be enough to give rise to a suspicion of money laundering, but it’s a warning sign that needs to be followed up.
Unusual source of funds
Regulation 28 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017)requires you to scrutinise transactions to make sure that they’re consistent with your knowledge of the client. Large amounts of cash or private funding, even if held in a bank account, may be a warning sign of money laundering. You should consider how the client is able to have this amount of private funding and whether it’s consistent with what you know abou...
HM Treasury's national risk assessment of money laundering and terrorist financingspecifies the following services as most likely to be abused by money launderers: 1. trust and company formation 2. conveyancing 3. the operation of a client account To reduce risks when operating in these areas, you must make sure you: 1. comply with the anti-money l...
Asking the client for information is the first step in responding to a warning sign. It’s the answers your client gives, and more importantly the way they give them, which will help you to assess whether your warning sign gives rise to a suspicion of money laundering or not. Make sure you record the questions you ask, the answers given, and any sup...
You can reduce the chance of money laundering occurring and protect yourself from regulatory or law enforcement action with a few key steps: 1. stay alert to warning signs 2. ask questions 3. document the answers you’re given 4. follow your firm's internal reporting procedures and consider whether you need to make a suspicious activity report It’s ...
Where there are several warning signs you should make suitable enquiries to satisfy yourself that you do not have a suspicion of money laundering and so do not have to make a report to your firm’s MLRO or the National Crime Agency(NCA). After you've received explanations and supporting documents, if you’re still concerned that money laundering is t...
Aug 28, 2024 · Criminals may approach you online, in person or you might see a post on social media. They’ll ask to move money through your account, with you being allowed to keep some as payment. Or they may pay you to apply for bank cards in your name which they can then use. If you do this, it’s money laundering.
People also ask
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Apr 5, 2016 · If you think you’ve been involved in money laundering or you’ve lost money in a scam, contact Action Fraud immediately on 0300 123 2040 or via the website. Remember, if you’ve given out any of your personal information, or have made a payment, contact your bank immediately using the contact details on the FS Register.
