Financial firms are often best positioned to help spot professional money launderers, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) states in an operational alert published Thursday.
According to the federal anti-money laundering agency, although there may be accountants, bankers or lawyers engaged in professional money laundering, these offenders are often associated with, or own, money-services businesses or trading companies.
“Professional money launderers use their occupation and knowledge, as well as the infrastructure associated with their line of work and their networks, to facilitate money laundering, providing a veneer of legitimacy to criminals and criminal organizations,” the alert states, and they often work organized crime such as drug cartels and motorcycle gangs, but are not involved with the offences that generate illicit proceeds. “As such, they present unique identification challenges.”
FINTRAC suggests that legitimate financial firms are particularly capable of spotting professional money laundering activity. “Financial institutions are especially well positioned to recognize and report on suspicious financial transactions that may be connected to professional money laundering,” the alert states .
The alert sets out the indicators of possible money laundering activity through trade and money services businesses, and advises that firms which report to FINTRAC, such as brokers, banks and insurance firms, should use these indicators to potential professional money laundering.
The list of indicators includes: sudden inflows of large electronic funds transfers and cash deposits, numerous currency exchange transactions, and undertaking loans, investments, or real estate transactions involving certain high-risk countries.
“Most money services businesses engage in legitimate activities but some allow professional money launderers to exploit their services with their full cooperation. Others turn a blind eye to the fact that they are serving criminals,” the alert states.