Why banks look out for Money laundering

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Financial organisations have to be very careful with their customers’ money. They also have to be aware of high-level scammers and criminal gangs who look to use reputable financial services and organisations to bring money earned in illegal activities into the marketplace. Many banks, building societies and lending institutions will look to use an AML ID CHECK provided by companies like www.w2globaldata.com/regulatory-compliance-solutions-and-software/aml-id-checks. They do this to protect themselves as much as their customers.

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Most criminal activities are centred around acquiring cash in its hard currency form. Cash in hand is the most common way to gain money, but this presents problems. It is noticeable when someone enters a Branch and tries to open an account with a sizable amount of cash. The same is true when trying to make a purchase. Buying high-value items, such as cars and jewellery, and then selling, or returning them for a cash refund, is a surefire sign of possible money laundering. This is also true with Mortgages, where the rules are very tightly observed. For example, you cannot sell a newly purchased home within six months of it being bought.

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Once the money is in the normal market, it becomes quite untraceable, and the criminals have an air of respectability. This is why all financial institutions have a strong ethical code that adheres to try and ensure that no money laundering attempts get through.