Money laundering is all those procedures or actions carried out by some unscrupulous people or companies to introduce capital of “doubtful or illicit” origin into the financial system, seeking to hide its true origin; we know this type of capital as “black money”.
The concept of “money laundering” was born in the United States in the 1920s, during the time of the famous gangsters, who established networks of dry cleaners, with which they converted “black money” into “legal money,” the importance of these dry cleaners was not to earn money but to introduce their money (from criminal operations) to the economic activity of the country.
Methods for money laundering
For money laundering, criminals use different methods and forms to convert their resources into “circulating, and legal” money, the most common methods are the following:
File fictitious benefits
Through the creation of companies, making use of “front businesses,” “briefcase companies,” or local businesses that justify cash payments, such as car washes, bars, dry cleaners/laundries, casinos, among others.
Purchase of goods
This happens when purchases are made for values higher than the market price, and then they are sold at a lower price to get “losses” of money.
Origin of capital
There are two possibilities, one of them is that the money comes from activities in the world of drugs, arms trafficking, human trafficking, activities that they will not legalize, and the other possibility is that the capital comes from the non-declaration of legal, economic activities.
Mercury Cash Against Money Laundering
Mercury Cash offers the hosted wallet service for cryptocurrencies, allows its clients to buy/sell Bitcoin, Ethereum, and Dash, in addition to offering accounts in dollars and euros for its users. The Mercury Cash policy clarifies that the company will not do business with people or companies that violate the law.
In the Republic of Estonia, its parliament approved a Law on the Prevention of Money Laundering and Financing of Terrorism, in this law a set of obligations are imposed for all companies that are registered and do business in that country, as well as for the shareholders and workers of the companies.
As a company that makes commercial and financial life in Estonia, Mercury Cash adheres to these regulations and takes its own measures and standards to be complied with, both by its employees and its customers. Mercury Cash policies aim to comply with the law; these policies are periodically reviewed and updated to guarantee the existence of internal procedures and controls aligned with international laws and standards.
Actions to be taken by Mercury Cash
Through a prevention program, Mercury Cash seeks to optimize company standards to prevent money laundering. This program is following the risks posed by the location, size, nature, and volume of the financial services provided by the company and consists of the following points:
- Incorporation of policies, internal controls and procedures designed to comply with established regulations.
- Assign an official to assume responsibility for monitoring compliance with the program.
- Educate and train staff to ensure compliance with standards, and also train them in the capture or detection of suspicious or illegal activities.
- Seek an independent review to monitor and keep the program up to date.
Assessing the risks against money laundering
Mercury Cash develops a risk assessment in three steps to avoid money laundering:
- Identify products, services, customers, transactions, and geographical locations of the company.
- Carry out a detailed analysis of the data to better assess the risk.
- Identify the elements that intervene to mitigate the risks of money laundering.
For more information on the permits that Mercury Cash has, you can visit the following link.
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