BUISENESS MANAGEMENT
LEGAL ISSUES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A university student who has inherited money from a relative wants to invest in the business
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The Chief Financial Officer has started moving around money in the company’s various accounts without explanation.
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Expensive company assets are being replaced by cheaper versions with no given reasons.
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The owners of the business are reluctant to talk about a new investor or source of new investment.
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Detailed explanation-1: -Money laundering is often distilled into a simple three-stage process: Placement, layering, and integration.
Detailed explanation-2: -Layering is another popular and effective way for financial criminals to launder their illegal funds. The idea is to distance the money from its illegal origins by putting it through numerous transactions and various forms. For instance, cash can become gold, then become real estate, and then become casino chips.
Detailed explanation-3: -Cash Transaction Reports-Most bank information service providers offer reports that identify cash activity and/or cash activity greater than $10, 000. These reports assist bankers with filing currency transaction reports (CTRs) and in identifying suspicious cash activity.