There are several products or services that a company may offer that pose a higher risk of money laundering or terrorist financing than others. Some examples are:
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Cash-intensive businesses: businesses that primarily receive or dispense cash, such as money exchange bureaus, jewelers, or car dealers, are more vulnerable to money laundering. This is because cash is more easily anonymized than other payment methods such as credit cards or wire transfers.
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International transactions: Businesses that deal with customers in countries considered high-risk for money laundering or terrorist financing are at higher risk. For example, these countries may be on the financial sanctions list of governments or international organizations.
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Financial services: Companies that provide financial services, such as banks, investment firms, insurance companies, or asset managers, may be vulnerable to money laundering or terrorist financing, especially if they handle international wire transfers or other complex financial transactions.
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Real estate: businesses that deal in real estate, especially expensive real estate, may be vulnerable to money laundering. Real estate can be easily anonymized and can be used to launder money from illicit sources.
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Online platforms: Businesses that offer online platforms, such as online marketplaces or e-commerce platforms, are vulnerable to money laundering or terrorist financing because they can make it easier for criminals to buy or sell goods and services anonymously.