Money laundering is the term used to describe the illegal process of making huge amounts of money which is usually curated through criminal activity. This can include drug trafficking or terrorist funding, etc. These huge amounts of money which are generated through these activities is considered to being in a dirty form and to clean it, it must be laundered. For this reason, the money laundering crime is carried out by both street-level criminals as well as white collar ones.
The money is laundered as a means to bring it onto proper financial documentation and into the money market through clean means. Through this way, any track of the money being linked to the criminal activity can be erased. For this reason, Money Laundering Checks or MLC’s are carried out. They are a requirement by the law for all businesses to carry out these checks before any investment is taken from you.
What is a Money Laundering Check?
A money laundering check is a form of an identity assessment which is carried out by businesses to ensure that all the investors are as legitimate as they show themselves to be. This allows you to ensure that the investors are not investing on behalf of another person, into your business. You are able to keep a track of the investments that are put into your business and the source through which they are earned, being completely legal. This rules out any complications arising for your business in the future.
These money laundering checks do not usually take place in the foreground, but this may vary according to different circumstances. The money laundering checks are a means to confirming your true identity as a person and investor. For proper identification to be achieved, you will be required to fill the Customer Identification form. Through this form your personal details will be obtained. Along with this, you must submit identification documents which will further prove your legitimacy.
These money laundering checks are a means to provide insurance to the business from being a part of any criminal activity, which is most commonly the misuse of facility. These money laundering checks are usually carried out only when large amounts of money are being transferred or invested into a business. These checks do not in any way mean that you are a criminal or are suspected of carrying out anything illegal. They are simply a verification process and enquiry requirement to make sure of the proper track the money you are investing has followed.
If there are any issues or problems with your identification, it will be difficult for any business to process your investment further for their business. It may therefore be cancelled. However, upon proper verification of your identity, you will be free to carry out investments for whichever amount you wish to do so.
Money Laundering checks are simply a means of verification for the track and trace of large amounts of money. They are simply to ensure that the money which is being invested is not part of any criminal based activity, as this could lead the business into illegal issues. You need not worry about these checks as you have nothing to hide.