There are two main risks faced in the business sector; Firstly, that someone may not be who they claim to be or they are acting as an agent or in some other capacity for someone else who wishes anonymity or is someone we would not want to be doing business with, and
That there is also a risk that the products and services we offer ‘facilitate’, that is, make easier, the movements of proceeds of crime. That means that the very work we undertake can help the criminal move the proceeds of his crime.
It is these two risks that are at the centre of the UK anti-money laundering regime and is the main focus of firms’ risk-sensitive policy and procedures for mitigating the risks.
The cost of direct fraud against the Government has been put at £20billion per year, that is £303 for every man, woman and child in the UK. Direct fraud against the government includes tax evasion, both direct and indirect, duty fraud and evasion, different types of benefit frauds such as Working Families Tax Credits, attendance allowance, housing benefit, invalidity allowances and so on and so forth.
It would be however, unimaginable to regulate all business, so only some types of business are in the regulated sector for Anti-Money Laundering purposes. These are the types of businesses who are most at risk from the activities of criminals.