AML/CTF COMPLIANCE FOR OTHER BUSINESSES

Buying and selling high-value assets such as antiques and fine art is attractive for criminals because such transactions can avoid interaction with the financial sector.

Criminals may buy such goods anonymously for cash (that is, physical currency) and these type of assets may be easily hidden and/or can be transferred to third parties with limited documentation.

Valuable assets such as antiques and artwork and other items purchased can generally hold or improve their value and can be resold later.

The Money Laundering and Terrorist Financing (ML/TF) risks associated with the antiques and fine art sector include:

• The significant or frequent use of cash to purchase valuable commodities and assets, which can then be resold to disguise the origin of illicit funds
• Criminals may also use cash to buy high-value goods such as art works, antiques, then travel overseas with them to transfer value while avoiding detection
• Organised crime groups may use cash to purchase high-value goods then sell them for cash, so they can disguise the origin of the funds and deposit the money into the financial system without raising red flags

Antiques and fine art businesses captured by the AML/CTF obligations must ensure the organisation conducts a comprehensive ML/TF risk assessment to identify, assess, mitigate and manage ML/TF risk exposures. This is a critical first step in complying with AML/CTF laws.

Bookmakers and betting agencies are attractive to criminals wanting to launder the proceeds of crime.

Bookmakers are vulnerable to money laundering activities for various reasons, such as ease of access, anonymity, and high volume of cash transactions.

Casino and gaming machine venues are attractive to criminals wanting to launder the proceeds of crime.

Casino and gaming machine venues are vulnerable to money laundering activities as many casinos and gaming facilities offer services similar to financial institutions, including accounts, foreign exchange, money changing, and electronic funds transfers.

Bookmakers, casinos and gaming machine venues may also have become more attractive to criminals over the past few years as the financial sector has implemented comprehensive AML/CTF measures.

Businesses involved in the gambling sector captured by the AML/CTF obligations must ensure the organisation conducts a comprehensive ML/TF risk assessment to identify, assess, mitigate and manage ML/TF risk exposures. This is a critical first step in complying with AML/CTF laws.

Buying and selling high-value assets such as bullion, precious metals or gems, is attractive for criminals because such transactions can avoid interaction with the financial sector.

Assets of this type assets may be easily hidden and can be transferred to third parties with limited documentation.

Criminals may buy such goods with cash (that is, physical currency) and give them to other parties to avoid detection.

Bullion, precious metals and gem dealers may also have become more attractive to criminals over the past few years as the financial sector has implemented comprehensive AML/CTF measures.

The Money Laundering and Terrorist Financing (ML/TF) risks associated with the bullion, precious metal and gem dealers sector include:

• The significant or frequent use of cash to purchase valuable commodities and assets, which can then be resold to disguise the origin of illicit funds
• Criminals may also use cash to buy high-value goods such as bullion, precious metals and gems, then travel overseas with them to transfer value while avoiding detection
• Organised crime groups may use cash to purchase high-value goods then sell them for cash, so they can disguise the origin of the funds and deposit the money into the financial system without raising red flags

Bullion, precious metals and gem dealers captured by the AML/CTF obligations must ensure the organisation conducts a comprehensive ML/TF risk assessment to identify, assess, mitigate and manage ML/TF risk exposures. This is a critical first step in complying with AML/CTF laws

Buying and selling high-value goods such as cars and boats is attractive for criminals because such transactions can avoid interaction with the financial sector.

Cars, boats and other motor vehicles can be purchased by criminals using illicit cash or a combination of credit and illicit cash. Where credit is obtained for the purchase, the loan is often repaid early using illicit cash. The cars are then resold. Any losses made by the criminal on the loan or as a result of a decrease in the cars’ resale value are borne as the cost of laundering

 The Money Laundering and Terrorist Financing (ML/TF) risks associated with the motor and boat dealer industry include:

• The significant or frequent use of cash to purchase valuable commodities and assets, which can then be resold to disguise the origin of illicit funds
• Criminals may also use cash to buy high-value goods such as motor vehicles and boats, then ship them overseas to transfer value while avoiding detection
• Organised crime groups may use cash to purchase high-value goods then sell them for cash, so they can disguise the origin of the funds and deposit the money into the financial system without raising red flags

Motor and boat dealers captured by the AML/CTF obligations must ensure the organisation conducts a comprehensive ML/TF risk assessment to identify, assess, mitigate and manage ML/TF risk exposures. This is a critical first step in complying with AML/CTF laws

Trust and Company Service Providers (TCSPs) can take different forms, but generally assist in the creation, operation and management of corporate and trust structures.

The services offered by TCSPs operate as a gateway to property and financial markets, financial institutions and other regulated professionals. These can be misused by criminals to disguise beneficial ownership, conceal the origins and purposes of financial transactions, facilitate tax evasion and, ultimately, launder the proceeds of crime, as well as, where complex structures are established, create distance between criminal entities and their illicit wealth.

The Money Laundering and Terrorist Financing (ML/TF) risks associated with the motor and boat dealer industry include:

• Obscuring ultimate ownership through complex layers and legal entity structures
• Evading tax and exploiting known tax shelters
• Evading regulatory controls
• Providing a veneer of legitimacy to criminal activity by helping to conceal proceeds of crime
• Creating distance between criminal entities and their illicit income or wealth by using complex business and corporate structures
• Avoiding detection and confiscation of assets, and hindering law enforcement investigations

Trust and company service providers captured by the AML/CTF obligations must ensure the organisation conducts a comprehensive ML/TF risk assessment to identify, assess, mitigate and manage ML/TF risk exposures. This is a critical first step in complying with AML/CTF laws.