3 Signs That Your Business is Being Used for Money Laundering

 Posted on May 09, 2022 in Money Laundering

Money laundering is, simply put, the illegal act of making “dirty” money appear “clean.” Generally, this involves making illegally-obtained money, such as profits from selling illicit drugs, look like it came from a legitimate source. Money laundering schemes are growing increasingly sophisticated and hard to detect. With the rise of online and international trade, it is easier than ever for unscrupulous actors to filter dirty money through legitimate businesses. If you own a business, it is important that you keep an eye out for any signs that someone is using your company to launder their illicit funds. Even if you are doing everything in your power to run your business in a legal and ethical manner, all it takes is one criminal to take advantage of you and you could find yourself facing federal charges. If you suspect that your business is being used for money laundering, do not wait to hear from the FBI - call an attorney immediately and follow their advice.

What Are Some Clues That Someone is Laundering Money Through My Company?

The key is to watch for patterns over time. While the presence of one of these signs from time to time could be perfectly innocent, if you start noticing more than one sign or a repetitive pattern of activity, it might be time to talk to a lawyer. Red flags may include: 

• Overpricing - Look out for instances where it appears that a customer paid way too much for a single item. This is very common for those who run online stores that sell physical items, like jewelry or art. If it suddenly appears that some of your goods are fetching prices far over market value, it could be a sign of money laundering. 

• Cancellations - If a “client” pays a large sum of money to your business and then cancels the contract, requesting a refund, this could be an attempt to make dirty money look like it came from a legitimate source - you. While this is bound to happen to service-oriented businesses sometimes, if it happens a lot it should raise suspicions. 

• Digital currency - While some perfectly legitimate companies do routinely use cryptocurrency like Bitcoin, if you suddenly find that a large number of your clients insist on paying for goods or services this way, it could be problematic. Cyber currency is less traceable and more difficult to track. 

You know your business better than anyone. If something does not seem right all of a sudden, it probably is not. A lawyer can help you figure out your next steps. 

Contact an Illinois Federal Money Laundering Attorney

Law Offices of Hal M. Garfinkel LLC, Chicago Criminal Defense Attorney can help you determine whether your business is being taken advantage of for money laundering purposes. Speak with one of our experienced Chicago federal money laundering lawyers before you consider speaking with law enforcement or even voicing your concerns to others. Call us at 312-629-0669 for a free consultation. 

Source: https://www.investopedia.com/ask/answers/022015/what-methods-are-used-launder-money.asp