How do banks monitor money laundering?

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As we move money around our bank accounts,  we are being observed. Whilst that might sound a bit “Big brother”,  in this case, it is not such a bad thing, The transactions that you make and your spending habits or the conduct of your account is monitored by your bank. They are not judging you on your purchases, they are simply looking out for you and your money. It’s one of the many sad facts about our modern world that out there are teams of dedicated fraudsters looking to deprive you of your savings and income in an instant. The use of online banking and mobile phone apps and social media has made this even easier for them to do it.

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However, Banks can be on the lookout for anything that looks to be out of the ordinary or not in keeping with your usual spending patterns. They also have the security of using an AML ID Check to make sure that nothing like money laundering, a very serious offence, occurs on your account.

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Money laundering is where a criminal gang or individual tries to use a legitimate account (possibly yours) to channel their profits into the wider money market. Once the money has passed through your account, for example, as a faster payment in,  then immediately out again to another, it starts to flag up with the bank, and you can expect an exploratory call from the fraud department. Don’t be too afraid. For the most part, your banking will continue without any issues. However, there are certain “red flags” that will show up on the banking systems and give them cause for concern.

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