You often hear about scams or frauds on the news. You probably never think it could happen to you. However, many people unknowingly get involved in money laundering schemes. Business deals that seem normal might be a front—but you only find out the truth when you’re already facing felony charges.
Knowing what to watch out for can help you avoid serious legal trouble.
How criminals hide illegal funds
Money laundering transforms illegally obtained funds into what appears to be legitimate income. Criminals usually do this through complex financial transactions. They often use real businesses and unsuspecting professionals as fronts to help make their money look like it came from a legitimate source.
Behaviors that should raise red flags
Sometimes, if an opportunity seems too good to be true, it probably is. Be careful of deals that promise incredibly high returns but very little risk. Watch out for suspicious patterns that could indicate money laundering, like:
- Strange payment methods: Your client only wants to pay in cash or cryptocurrencies or uses many accounts to pay one bill.
- Complicated deals or instructions: A business deal involves several companies or people for no apparent reason.
- Reluctance to provide information: Your clients don’t want to share basic information about their business or where their money comes from.
- Unnecessary pressure to rush: Your client pushes you to finish a deal quickly and doesn’t want you to ask questions.
- Inconsistent business practices: Your client’s spending or transaction sizes don’t match what their business normally does.
These signs don’t always mean something illegal is happening, but they should make you want to investigate further. Checking things out more closely and getting advice from a professional can help keep you from accidentally getting involved in a crime.
Protecting yourself and your business
Always be careful when doing business, especially if it involves large transactions or suspicious instructions. If something doesn’t seem right, trust your gut and seek professional help. It’s a good idea to talk to an attorney if you have any doubts about a deal. Doing your due diligence can protect you and your business from unwanted trouble with the law.