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Anti-money laundering training: what you need to know

We've put together a comprehensive guide to anti-money laundering training, including definitions, benefits, and an example of what not to do from TabCorp.
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John Sherman
2017-04-04

There are many types of criminals around the world, and unfortunately, most of them rely on the good and honest nature of others to make their living. One of the simplest ways for these criminals to acquire their money and remove any trace of illegal activity from it is to “launder” it.

Money laundering usually works in three stages, and it’s the responsibility of all businesses to be able to spot the signs of this occurring and report it to the authorities when it does. Failure to do so could see you end up with a $45 million fine like Australian gaming operator Tabcorp did when they failed to notify the authorities about the suspicious behaviour of some of their customers.

An astonishing 5% of the world’s GDP is laundered each year, which equates to around $1.5 trillion. Although you might think that money laundering is only left to seedy businesses and willing participants, these people are often performing their shady deeds right under the nose of good and honest organizations - much to the detriment of the business.

What Defines Money Laundering?

  • Placement – this is the riskiest stage and involves placing the ill-gotten money into a legitimate business without being noticed.
  • Layering – this sophisticated process sees the criminal try to hide their illegal activity in a complicated layer of other transactions.
  • Integration – the money is returned to the criminal from legitimate sources.

What Anti-Money Laundering Training Covers

  • The scope of the money laundering problem we are facing in the business world today…
  • Why money laundering is illegal and what the penalties are for the criminals and anyone involved in the process…
  • Why anti-money laundering policies are so important…
  • The signs of the three main stages of money laundering so you’re able to put a stop to it…

Which Types of Businesses Should Be Aware of Money Laundering?

All employees have their own responsibilities when it comes to money laundering laws and penalties. When you and your colleagues don’t fully understand your obligations, you too can be held responsible for future wrongdoings!

Learn From TabCorp’s Mistakes

As mentioned earlier, the Tabcorp case of money laundering was one of the largest recorded in Australia’s history. The federal court found that Tabcorp was responsible for breaching the important Anti-Money Laundering and Counter-Terrorism Financing Act (AML/CTF) on 108 separate occasions spanning over five years.

This is important:

The court found that Tabcorp didn't have a robust AML/CTF program in place within the organization, and as a result, these funds were able to pass through unnoticed. Principals in this company were found guilty of assisting with this criminal activity due to their negligence, and as a result, they were fined an impressive $45 million for doing so.

When you consider the enormity of this fine and the legal ramifications, can your business really afford to lose this much money for a simple lack of knowledge? With one simple course, you can ensure you, your employees, and your business as a whole is protected from the very real threat of money laundering.

What Can You Benefit from this Anti-Money Laundering Training

If you’re still sitting on the fence about the Anti-Money Laundering training and wondering if it’s really such a big deal for you to learn, consider the fines alone that come from being involved in this illegal activity. The current maximum penalty for assisting in this crime is 14 years, and as indicated by the Tabcorp case, you can be ordered to pay into the millions.

If you’re interested in protecting your business, educating your staff, or just staying aware of the warning signs and suspicious activity, you shouldn’t overlook Anti-Money Laundering training for your team.

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