Day 86: Domestic Transfer

#QuickBiteCompliance Day 86

💸 How Domestic Transfers Can Be Misused for Financial Crime: What You Need to Know

Let’s break down domestic transfers in simple terms: Imagine you send money to your friend, and both of you live in the same country. That’s a domestic transfer. Easy, right?

But did you know bad guys (like scammers and criminals) use this same system to do bad things? Here’s how:

🔍 Example 1: Hiding the Source of Dirty Money
Criminals might earn money in illegal ways (like selling stolen goods). To make it look like the money came from a legal source, they send it through multiple domestic transfers between accounts. This confuses people trying to track the money.

🔍 Example 2: Fake Businesses
Some scammers create fake businesses and send domestic transfers to make it look like the business is real. This helps them fool banks, customers, or even the government.

🔍 Example 3: Avoiding Attention
Since domestic transfers don’t cross borders, they often get less scrutiny compared to international transfers. Criminals know this and take advantage by keeping their transactions “local.”

💡 What Can We Do?

Be alert if someone sends or receives a lot of money for no clear reason.

Banks and businesses must use smart tools to detect unusual patterns.

Everyone should report suspicious activities.


Let’s work together to keep our financial systems safe! 🚨

#AntiFinancialCrime #MoneyLaundering #DomesticTransfers #AML #FinancialSecurity #StayAlert #InclusiveRegtech #OpenSourceAML
Source: https://www.acams.org/en/resources/aml-glossary-of-terms

Domestic Transfer