How can money be laundered in the Money Service Businesses Sector?

  • Money service businesses and foreign exchange dealers offer many products and services that can be useful in the placement and layering of illegal funds.

Identifying suspicious transactions for Money Services Businesses

  1. Client wants to pay transaction fees that exceed the posted fees.
  2. Client knows little about address and contact details for payee, is reluctant to disclose this information, or requests a bearer instrument.
  3. Client wants cash converted to a cheque and you are not normally involved in issuing cheques.
  4. Client enters into transactions with counter parties in locations that are unusual for the client.
  5. Client instructs that funds are to be picked up by a third party on behalf of the payee.
  6. Stated occupation of client is not in keeping with the level or type of activity.
  7. Client conducts transactions involving countries known as narcotic source countries or as trans-shipment points for narcotics.
  8. Client is accompanied and monitored.
  9. Client collects the money and immediately hands it over to a third party.
  10. Multiple persons, who do not appear to be connected, receive money from the same person(s) on a frequent basis, sometimes on the same day or days apart.