Financial Monitoring in Cash-Intensive Industries

Monitoring financial transactions is straightforward in cash-intensive industries like hair salons and other businesses that frequently deal with cash.

Dividing customers into 'peer groups' and comparing the revenues of direct competitors is a strategy mentioned in the text to address the challenges of monitoring financial transactions in cash-intensive industries.

Businesses like barber shops, restaurants, cafes, bars, nightclubs, and second-hand car dealers are under increased scrutiny by government agencies due to their cash-intensive nature.

Casinos and gambling establishments are subject to the same reporting requirements as other cash-intensive businesses, such as reporting only suspicious transactions to the Financial Intelligence Unit.

If a young person presents $3,000 in cash at a casino, the casino might be required to report the transaction to the Financial Intelligence Unit, depending on the money laundering indicators.

The text suggests that the mixing of legitimate income with criminal funds is a challenge specific to cash-intensive industries like hair salons and other businesses where cash is frequently used.

Submitting invoices and associated evidence allows the customer to prove which party business was conducted with, at which location it took place, and through which payment channel the transaction was completed.

A cash payment of seventy thousand euros in an increased risk country is not noteworthy and does not require further investigation.

If the customer provides a falsified bill, it can be a mitigating factor in that the customer's story can be found plausible.

Asking the client about their policies to counter bribery, money laundering and other fraudulent activities allows the financial institution to become more covered.

If the client is owned by a parent company that is on the stock exchange, it is always a mitigating factor regardless of the percentage of freely tradable shares or the recognition of the stock exchange.

Real estate forms filled out by the client contain all the important questions the money laundering obligated institution wants to know, such as the location of properties and who the tenants are.

Small and medium-sized businesses are never affiliated with any organizations through certification.

If the client is supervised by an authority, it is always a mitigating factor regardless of the risk level of the country the authority is located in.

The mitigating factors discussed can be very diverse and depend on the specific money laundering mandatory institution the financial institution is working for.