#QuickBiteCompliance Day 150
Unmasking the Hidden Threads: How Investigations Help Stop Financial Crime
Imagine you own a lemonade stand. One day, someone gives you a $100 bill for a small lemonade. It seems odd, right? Before accepting, you’d probably check if the bill is real, ask why they’re using such a big note, or even ask an adult for help.
This simple process is a lot like financial crime investigations. Banks and businesses constantly check transactions to ensure they’re not unknowingly helping criminals move illegal money.
How Do Criminals Try to Hide?
Bad actors use different tricks to avoid being caught, such as:
🚨 Fake Identities – They create fake profiles or steal real ones to open accounts and move money.
🚨 Shell Companies – They set up companies that don’t do real business but help hide money.
🚨 Multiple Accounts – They spread transactions across different accounts so no single one looks suspicious.
Stopping Crime Before It Spreads
Investigations often start with a simple alert – like a sudden large transfer or a transaction with a country under sanctions. The process involves:
1️⃣ Checking Basic Info – Reviewing customer details, transaction history, and flagged activities.
2️⃣ Digging Deeper – Looking at linked accounts, contacting customers for explanations, and analyzing risk factors.
3️⃣ Escalating When Necessary – If red flags remain, compliance teams step in, potentially alerting authorities.
Technology is making this process smarter. Inclusive Regtech and Open Source AML solutions—like those from Mulai Console—help financial institutions investigate faster and more effectively.
Stopping financial crime isn’t just about big banks—it affects all of us. Whether it’s protecting your lemonade stand or a billion-dollar business, strong investigations keep the financial system safe for everyone.
🔗 Learn more: https://www.acams.org/en/resources/aml-glossary-of-terms
#InclusiveRegtech #OpenSourceAML #100HariNulis #AML #FinancialCrime #Compliance
