Why You Need to Learn About Anti-Money Laundering

Lets face itwe live in a world where money laundering is getting rampant. Many syndicates are using seemingly legitimate transactions and a variety of monetary instruments to make their money real. With that in mind, it is of utmost importance that we know about our anti-money laundering laws in the country and learn to protect ourselves from getting victimized.

The US has a slew of laws with regards to money laundering. It has released some preventive regulatory measures such as the Bank Secrecy Act, wherein financial institutions are required to report some of their transactions to the United States Treasury. If you have a cash transaction of more than $10,000 in a bank, there will be a currency transaction report that will give your identity and source of cash to the treasury.

You may say that this has nothing to do with you because you dont really make huge transactions in any financial institution on a regular day and that you are not an extortionist or a mafia member. But you should also be aware because you might become a victim of any of these groups. You dont really know when youll have to hold some cold cash that your client might hand over to you, without knowing that it came from any illegal transaction. You should make your own preventive measures in order to be safe and not become a victim of these groups.

There are certain scenarios wherein you can be careful with your money and yourself. If you own a small business and you have a client whom you dont know personally that wants to pay you a substantial amount in cash for your goods and services, it is better if you have him deposit the cash in a bank from his account to yours. This way, youll have assurance that the bank will have a record of the transaction and it knows the identity of the depositor.

There are other mundane situations where you can protect yourself, such as getting an insurance agent, or paying with your credit card. You have to make sure that the agent whos getting your money is licensed. If you are from Ohio, you should be transacting with an agent who has had an Ohio insurance license renewal. If you have a friend who is already an agent, then that will be much better. Whenever you use your credit card for online transactions, make sure that you are visiting a well-trusted site. There are a lot of internet phishing going on nowadays and its better to be aware.

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