How to identify Layering in Money Laundering?
Regulated entities can identify layering in money laundering by identifying the red flags indicative of layering stage. Some of the common red flags include:
- Multiple fund transfers between accounts belonging to different countries, without any legitimate reason
- Multiple transactions involving currency conversions within a very short frame of time
- Use of shell companies without any apparent business motive
- Too many transactions between group entities without any reasonable cause
- Use of trade-based money laundering tactics
- Movement of funds through high-risk jurisdictions on a regular basis
Learn more about the layering stage of money laundering with this insightful article