Customer Type

  • There are various classes of clients, such as individuals, and different types of companies such as listed, private, partnerships, joint ventures, as well as various types of financial institutions.

  • A history of involvement in criminal activity would warrant the highest level of risk. Political figures and those in political organisations are high as they may have access to corrupt funds. Directors of multinationals may be lower risk than directors of private companies due to the level of due diligence that is possible for a listed company.

  • Company structures that offer some level of privacy (known as the ‘Corporate Veil’), such as charities, limited companies, trusts, or other structures where it is difficult to identify the beneficial owners.

  • The following types of companies pose an increased level of money laundering risk:

    • Casinos

    • Companies and banks in tax and banking havens

    • Leather goods stores

    • Currency exchanges, money remitters, check cashers

    • Car, boat and plane dealerships

    • Used car and truck dealers, machine parts

    • Travel agencies

    • Brokers/dealers in securities

    • Precious metal and stones dealers

    • Import/export companies

    • Cash-intensive businesses – restaurants, retail, parking, car wash

    • Telemarketing – which is linked to ‘Boiler Room’ scams

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