Business Customers and Money Laundering Risk: A New Perspective
Author: Laurie S. Kelly, CAMS-Audit
As crime and money laundering methods evolve, so must our perceptions of the characteristics of business customers that present a higher risk for money laundering. Increasingly, legitimate businesses in industries traditionally perceived as low risk are acting as intermediaries in the “layering” phase of money laundering for transnational organized crime and other illegal activity.
Financial institutions should therefore modify and expand their customer due diligence beyond traditional high risk business customer profiles for money laundering – such as money transmitters or third party payment processors– and begin evaluating all business customers from a new perspective.