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How Do You Protect Your Business From Money Laundering and Other Financial Crimes

Financial crime is a severe offence in Australia, and failure to comply with the rules and regulations can result in a hefty fine and even jail time. There are different ways companies can make use of it to protect their assets from money laundering and tax evasion and keep their record clean. From having regular audits and reviews to filing a threshold transaction report, here are the different ways Australian companies can make use of to keep their monetary transactions in check:

  1. Learn About The Various Money Laundering Schemes Plaguing The Country:

The best way to keep an eye out for fraud and misconduct is to learn about the underlying problem instead of waiting for it to happen. Not to mention how organised crime constantly changes tactics and doesn’t hesitate to strike at the most vulnerable assets in any business. Learn how financial crimes are facilitated and then share them with the team. The more they know, the better. Companies can also conduct regular drills to keep the staff alert and busy. Don’t worry. There are plenty of resources available on the Australian government websites and other platforms of governing bodies online.

  1. Establishing A Policy on Anti-Money Laundering:

Businesses should start formulating plans and put strategies in place. The framework can help customers, clients and employees to make an actionable plan and weed out any malpractice like tax evasion and financial malpractice.

  1. Be Thorough When It Comes To Questioning:

Before signing a contract or entering into a new partnership, be perfectly thorough with the questioning and don’t be afraid to clarify things that may appear shady. Keep a record of the agreement, the agreed price of payment and other instances of expenditure. Moreover, if there are red flags in the agreement, highlight that too.

  1. Keeping Updated With Australia’s Financial Intelligence Unit:

Businesses are required to register with the AUSTRAC if they fall under the category of services that the financial unit describes. If businesses do fall under that category, then they are required to file reports like the threshold transaction report, which helps financial institutions keep an eye on the monetary transactions above a specific limit. The main purpose of this financial body is to help companies filter out their business interests and protect them from money laundering and financial terrorism.

  1. Always Have Detailed Information When It Comes To Clients and Customers:

Make a straightforward policy regarding customer acceptance and have a rigorous vetting process for all the information. It might be beneficial to have background checks set in place that will confirm any information they have entered. Be aware of deals that sound too good to be true or other transactions involving a large sum of money. If there is even a slight indication that the information doesn’t check out, act on it immediately. It’s better to waste an effort confirming whether the lead is trustworthy rather than face a lot of inconvenience in terms of fraud.

Businesses must make sure that their risk assessment and financial crime teams have all the resources necessary to mitigate risks and close the breaches in the infrastructure. Conduct reviews and internal audits regularly and set a strong financial crime compliance programme depending upon the frequency of transactions and vulnerability of data. Don’t be afraid to use the help of digital tech as long as the data and the tools are safe to use and licensed.

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