Should MSB’s “beware the ides of err... September?”

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As I say to my clients on a regular basis, Money Launderers don’t think the way we do! For example, they look at religious festivals across the globe and then work out how they can use them to their advantage.

So my thanks go to the sharp eyed Neil Tyson of GNT Fraud Solutions, (here is his company’s website http://www.gntfraudsolutions.co.uk/ ) who spotted an interesting article from Crimestoppers, the UK centred independent charity that helps to find criminals and solve crimes.

They have issued a warning about money launderers using the month of September to co-mingle the proceeds of crime with the legitimate remittance traffic from Money Service Bureaus (MSBs). Crimestoppers assert that the residents of two London boroughs can reduce the risk (although Crimestoppers boldly state prevent) their money being used to fund serious crimes by only using registered (with HMRC) money bureaus when transferring money abroad.

And why September? Well they feel that the message is particularly relevant during this month as a number of different faiths transfer money to relatives or charities abroad in line with the celebrations occurring around the middle (or ides) of the month. Namely and in no particular order:

§ Eid, the Muslim holiday that marks the end of Ramadan, the Islamic holy month of fasting
§ Navratri the Hindu festival of worship and dance
§ Rosh Hashanah which we commonly refer to as the "Jewish New Year."

So the, the argument goes, the volume of money sent goes up and, as a result, it is easier to mix extra illegal funds into the mix.

So potential customers are asked to avoid unregistered MSBs.

This, from my slightly jaundiced point of view, gives rise to a number of issues for those businesses in the regulated sector:

1) Do you advertise that you are regulated?
2) If you don’t, shouldn’t you? E.g. a notice in the shop window and a note on your website.
3) This kind of notice from Crimestoppers should be looked at as part of a continuing educational process for consumers.
4) It is worth remembering that a failure to register automatically makes your enterprise guilty of an infraction of the Money Laundering Regulations, and, subject to possible sanctions under criminal law
5) You might also find that the authorities find out about what you’re doing, by virtue of your clients (actual or potential) phoning someone like Crimestoppers to tell them what you have been doing. By the way, the CrimeStoppers number is 0800 555 111, should you feel the need.

It’s that point 5 that goes to my view on this. Cheap intelligence that could really have an impact on possibly criminal operations.

Now that, I like.