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Money laundering was made well known by the Italian mafia. The essential idea behind money laundering is the fact that stolen goods or money are cleaned by being intermixed with reputable and legal sales. This money is rapidly filtered away from the original source of the crime that makes it very difficult to track back to its source. Determining what money laundering can help establish a superior understanding of anti-money laundering.

Anti-money laundering is often a program set up by the United States government to help reduce such a crime from being committed by way of cash processing companies such as a payday loan business. It takes that every one of these businesses come with an AML compliance manual that explains the rules and regulations to be followed in that company's AML compliance program.

The AML program was created in the Patriot Act of 2001. It is important that companies handling the transfer of money do not assist in money laundering or the funding of terrorism. All these requirements include things like receiving valid and verified identification from every person using the business. In additon it needs comprehensive reporting on activity both normal and suspicious. Lastly, these companies should agree to adhere to any requests from police officers concerning a financial investigation of someone that has used their service.

These companies also are required to update their AML program regularly and provide a continued education for all employees. As a final point, these businesses will need to hire an independent business to look at their programs and make recommendations for improvement. Should a money handling service doesnt meet these requirements, the government maintains the right to shut that business down completely. Even issues with proper paperwork handling may lead to a business being shut down or fined by the government. It is a great deal of meticulous paperwork, but it is a burden the government found important to maintain tranquility.

A lot of businesses have declared this to be unfairly burdensome on their employees but the government maintains that the added security might help deter the instances of these crimes. National statistic support the effectiveness of this program but money laundering is a crime that is hard to track efficiently since the crime is only known when the criminals are caught committing it. This makes it harder to identify than other crimes where there is a direct and obvious victim to every crime which allows law enforcement agencies to be aware of the crime even if the criminal is never caught.
Overall, the goal of the AML program is to cut down the crime of money laundering. This is achieved through the use of an AML compliance program at individual businesses. The specific rules of each business are found in their own version of the AML compliance manual. For more information, click the link.

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