#QuickBiteCompliance Day 47
💡 Cash-Intensive Businesses: How Some Bad Guys Use Them to Hide Dirty Money 💡
Did you know that some businesses, like pizza places, car washes, or taxis, deal mostly in cash? These are called cash-intensive businesses because customers often pay with paper money instead of cards.
While many of these businesses are honest, bad guys can use them to hide money from illegal activities like stealing or selling bad stuff. Here’s how they do it:
1️⃣ Mixing Dirty Money with Clean Cash:
Imagine a criminal earns $10,000 illegally. They also own a car wash. Every day, they add a little of that dirty money to the real cash the car wash earns. Now, the stolen money looks like it came from washing cars!
2️⃣ Fake Sales:
Some criminals report fake sales to make their illegal cash look real. For example, a pizza shop might claim they sold 1,000 pizzas in a day but really sold only 100. The extra money they report is dirty money being “cleaned.”
3️⃣ Hard to Trace:
Because everything is paid in cash, it’s hard for law enforcement to prove how much money a business actually makes.
🎯 Example:
A taxi company might use fake rides to add $5,000 of stolen cash to their daily earnings. They report it to the bank as business income. Now, the dirty money is mixed with clean money, making it hard to spot!
👮♀️ Stopping the Bad Guys:
Experts track unusual patterns, like businesses reporting way more money than expected or operating at odd hours. With these tools, we can catch criminals and keep communities safe!
#StopFinancialCrime #AML #CashBusiness #MoneyLaundering #FraudAwareness #StayAlert #FinancialIntegrity #InclusiveRegtech #OpenSourceAML
Source: https://www.acams.org/en/resources/aml-glossary-of-terms
