Money laundering is the process whereby the proceeds of crime are transformed into ostensibly legitimate money or other assets. However in a number of legal and regulatory system the term money laundering has become conflated with other forms of financial crime, and sometimes used more generally to include misuse of the financial system, including terrorism financing, tax evasion and evading of international sanctions. Most anti-money laundering laws openly conflate money laundering (which is concerned with source of funds) with terrorism financing (which is concerned with destination of funds) when regulating the financial system.
Suspicious Activities
the following type of activities or transaction shall be possible money laundering activities:
- Large, frequent or unusual exchanges of cash, foreign currency or negotiable instruments which is not consistent with or reasonably related to the customer's normal business activities.
- Reluctance to provide reasonable information and documentation when requested during processing of transactions
Confidentiality of information
References
1. ^ See for example the Anti-Money Laundering & Counter Terrorism Financing Act 2006 (Australia), the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (New Zealand), and the Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance (Cap 615) (Hong Kong. See also (for example) guidance on IMF [1] and FATF [2] websites similarly conflating the concepts.
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