How Money Laundering Can Directly Affect You Or Your Business

Most people go through each day giving no thoughtof deposits are made directly to your bank account
whatsoever to money laundering, yet, whether you(you later find out these deposits were all made in
choose to think about it or not, money laundering, andcash and at a number of branches in several states).
the efforts to fight it, can impact you directly – inBy now, there should be sirens too going off, but you
your business or in your own home.REALLY NEED this sale. And, by now, you are an
First, as a business in the US, did you know you haveunwitting accomplice. Then, a few days later, he
a legal obligation to report the receipt of more thanreturns and cancels the order and asks for the refund
$10,000 in cash or cash equivalents, which includeto be a single check made payable to him personally.
foreign currency, cashier's checks, money orders, bankEven if you charge him an order cancellation fee, he
drafts and traveler's checks – in any combination?walks away with a big, fat check from a locally
As long as it is for a single transaction (not item –reputable store, rather than in possibly stolen checks,
but transaction), the receipt can even take place overor maybe even drug money (and you could still be
a period of time – as much as a 12-month period!financially responsible if the checks or wires do prove
(Banks and others with regular currency transactionto be stolen or embezzled). An extreme example to
reports have a cycle of only a single business day'ssay the least, but I wanted to point out some of the
postings.) The form involved is IRS Form 8300. Dotypes of red flags one needs to be wary of.
NOT ignore this! I am aware of individuals who haveAnd third, on a personal level, most all of us have
been sentenced to and served years in prison forreceived e-mails or seen work-at-home ads stating
purposely ignoring this. I will make another posting soonthat some foreign company needs people to process
just on Form 8300, its requirements and how to fill itpayments for them – often paying 10%
out properly.commissions to do so. Well, these are money mule
Second, you are aware that knowledge of the fundsschemes and, if you participate, you have just
being illicit at the time of receipt is a critical componentcommitted the crime of money laundering. Law
for it to be money laundering. However, the concept ofenforcement will contend (and prevail) that you should
willful blindness can put you in a position that youhave known better and that you had to have
should have known, so therefore, you DID know. So,suspected the funds might somehow have been illicit
especially as a business, you must be vigilant of who(and therefore, you KNEW). So not only will you lose
your customers are, if the transactions seem to makeyour little commission, you will likely have to make up
business sense, and how the transactions are beingthe funds your forwarded (because that money is
handled. For example, someone claiming to run a deli inlong, long gone and way out of anyone's reach), but,
Manhattan orders 83 complete Scuba outfits (suits,additionally, you could be facing jail time for money
tanks, regulators, etc) from your sporting goods store.laundering (people that assist those that are laundering
Already some bells should be sounding in your head,are as guilty of the crime as the actual perpetrators). 
but that is a lot of business to turn away. For theSo stay clear.
payment, he signs 5 third-party checks over to you (inAs the old adage goes, if it seems too good to be
amounts and from entities that seem odd to have hadtrue, then it probably is. I hope this has been informative
such transactions with a deli), or he has money wiredand that I have raised your awareness.
to you from several overseas companies, or a series