What are the signs of money laundering?

What are the signs of money laundering?

Money laundering is the process by which illegally obtained assets are disguised to appear to have legal origins. This practice involves hiding the source of dirty money, coming from activities such as trafficking, prostitution, corruption and tax evasion.

Some signs that may indicate money laundering:

1. Incompatible Movement: When there is a movement of resources that is incompatible with the client's economic activity and asset condition.
2. Large Volumes of Cash: Transactions involving large amounts of cash, especially when there is no clear economic justification.
3. Excessive Use of Tax Havens: Transfers to accounts in countries with banking secrecy, making tracking difficult.
4. Unnecessary Complexity: Commercial transactions that are excessively complex for no apparent reason.
5. Lack of Economic Justification: When there is no plausible economic reason for certain financial operations.

Money laundering occurs in three phases:

1. Placement: Introduction of dirty money into the economic system to hide its origin.
2. Concealment: Moving money through various financial transactions to make tracking difficult.
3. Integration: Use of already "clean" money in a new economic circuit.

To prevent money laundering, authorities establish procedures, such as documentary proof of the origin of deposits and strict monitoring of financial transactions. The FATF (Financial Action Task Force on Money Laundering) recommends measures to combat money laundering globally.

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