4 ms·
That's why any real criminal activity will have a front. Chinese takeaway, vending machines, flower or newspaper vendor, second hand shop, ..
by nelaboras 6y ago
That's why any real criminal activity will have a front. Chinese takeaway, vending machines, flower or newspaper vendor, second hand shop, ..
- kjs3 6y agoThose types of businesses get additional scrutiny from the financial fraud team for precisely the reason they're useful as front businesses (as well as tax evasion).
- gruez 6y agoWhat does this look like? Does the bank ask for receipts if a Chinese restaurant wants to be their customer? Do they stake out the restaurant to see whether the foot traffic levels correspond to the claimed revenues?
- pas 6y agoSome banks do, some don't. In a lot of countries if you establish a small company and open a bank account for it they will just do the bare minimum, after all if you got a tax number and just got a new company registered you already jumped through a few background check hoops. Of course they will still run your name through their whatever systems. And eventually if your business starts transacting it'll be constantly looked at by the automated systems. As long as you don't do anything suspicious, no one will care. Basically if you behave like all the small shops that have to deposit cash, no one will look twice. Also, cash is not interesting, the problem is when you start to wire money (or get transfers) to/from places that small kitchens usually don't. And that's when risk and compliance departments might notice the activity.
- kjs3 6y agoNo, it compares this Chinese restaurant to the hundreds or thousands of other similar businesses who bank with it, in similar markets. No, the bank doesn't ask for receipts or stake out businesses. If that business has a transaction profile that's out of line with the 'similar business' model, they potentially get flagged.