How to report money laundering and suspicious activity
- azakaw
- Sep 15
- 6 min read
Updated: Oct 18
Money laundering supports, among others, drug trafficking, tax evasion, terrorism, and corruption.
Reporting money laundering and suspicious activities is essential for fighting against financial crime.
Today, we'll teach you how to report money laundering and suspicious activity.
This guide includes the legal obligations involved in reporting money laundering, along with helpful tips to make sure your report is efficient and private, and complies with international Anti-Money Laundering (AML) laws.
Reporting Money Laundering: Key Takeaways |
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What does “money laundering” mean, and how does it work?
Money laundering is the practice of disguising illicit funds so they appear legitimate, typically unfolding in three stages:
placement, where illegal money enters the financial system (e.g., deposits or real estate deals);
layering, which hides its origin through complex transfers, shell companies, or offshore accounts;
integration, where the funds return to the economy as seemingly lawful assets or business income.
The consequences go beyond monetary losses. Money laundering weakens government accountability, distorts markets, and aids organised crime.
For example, money laundering in real estate inflates housing markets and puts average buyers at a disadvantage. It poses a threat to national security and economic stability if left unchecked.
Read also: Real estate money laundering red flags
How to recognise money laundering and suspicious activities
There are several money laundering schemes, and to report effectively, you must first be able to recognise the signs of illegal activities.
Although suspicious activity may not always be immediately apparent, patterns and behaviours can serve as warning signs.
People and organisations can act promptly if they are aware of these indicators of money laundering and/or suspicious activity.
Common transaction red flags
Large, inexplicable cash withdrawals or deposits.
Deposits should be structured to fall just below reporting thresholds, such as $10,000.
The use of several foreign accounts without a good reason.
Intricate ownership arrangements are intended to conceal the beneficial owner.
Behavioural warning indicators of suspicious activity
Reluctance of clients to divulge ownership or identification information.
Unusual desire to evade anti-money laundering investigations.
There is pressure to complete transactions fast and without paperwork.
Strengthening AML compliance begins with being vigilant in identifying these trends.
Read also: Signs of money laundering
Legal obligations and procedures to report money laundering and suspicious activities
It is only half the fight to know what money laundering looks like.
Knowing your responsibilities and the proper protocols to report suspicious activity is the next step. This section lists resources, practical actions, and legal obligations.
Who can report money laundering?
Businesses, employees, and even individuals must report suspicious financial activity under AML rules.
Failure to do so can lead to heavy fines, license suspension, or criminal charges.
Businesses and financial institutions are subject to AML regulations, which obligate them to report instances of money laundering.
Workers are also subject to those regulations if they observe questionable conduct in their company.
Any individual observing unusual financial activity, such as suspicious real estate transactions or inexplicable luxury purchases, is also obligated to report it.
Related content: TOP AML training courses for accountants
How do you report money laundering activities?
It doesn't have to be difficult to report money laundering. You can make sure your report is understandable, reliable, and helpful to investigators by adhering to a set procedure.
To assist you with the process, here is a straightforward, step-by-step guide for reporting money laundering or suspicious activities.
1. Determine the proper authority
If you want to prevent money laundering or report it, the first step is to contact the right authorities.
Jurisdiction | Where to Report | Type of Report/Form |
United States | Financial Crimes Enforcement Network (FinCEN) | Suspicious Activity Report (SAR), Currency Transaction Report (CTR), Form 8300 |
United Kingdom | National Crime Agency (NCA) | Suspicious Activity Report (SAR) |
Other Nations | Local Financial Intelligence Unit (FIU) | Cash Transaction Report (CTR), Suspicious Transaction Report (STR) |
International Organisations | FATF (Financial Action Task Force), UNODC (United Nations Office on Drugs and Crime) | Provide guidelines for cross-border reporting |
2. File the report
Online submission portals are offered by the majority of FIUs and agencies.
Make sure the report is submitted as soon as possible because delays may impede investigations.
Read also: Suspicious Transaction Report (STR) meaning
3. Add pertinent details
Information about the transaction or suspicious behaviour;
Participants (people, companies, beneficial owners);
Amounts, dates, and pertinent account numbers;
Any supporting documentation, such as communications or invoices.
4. Use the available resources
For SAR/STR submission, make use of the hotlines, official websites, and online platforms that are available.
If you’re reporting internally first, resort to AML teams or employer compliance officers.
Best practices to document evidence and maintain confidentiality
Just filing a report is insufficient; how you prepare and safeguard the data is just as crucial.
Practical methods for recording suspicious activity and protecting your identity during the reporting process are highlighted in this section.
Effective documentation techniques
When obtaining proof, be factual and explain your observations without conjecture.
Also, make sure you remain organised by centralising timelines, account numbers, and transaction records.
To avoid leaks, use secure tools and keep private information on encrypted systems.
Reports with thorough documentation bolster investigations and aid in efforts to comply with AML regulations.
Ensuring confidentiality and protection
Raising suspicions too soon could compromise investigations by giving criminals the advantage. It’s crucial to maintain confidentiality, mainly by making sure there is:
Identity protection, as reports can be submitted anonymously in many jurisdictions;
Internal protection, as employees are protected against reprisals by whistleblower protection laws;
Legal support, because by offering whistleblower protection laws, nations like the US, UK, and EU strengthen governmental accountability in the battle against money laundering.
FAQs
How to report money laundering in the USA?
Use FinCEN's Bank Secrecy Act (BSA) E-Filing System to submit a SAR. Depending on the transaction, you might also submit a Form 8300 or a CTR.
How to report money laundering in the UAE?
The UAE Financial Intelligence Unit receives reports via the goAML platform.
Related content: UAE AML regulations
How to report money laundering in Canada?
Send a report to Canada's Financial Transactions and Reports Analysis Centre (FINTRAC).
How to report money laundering in the UK?
Use the National Crime Agency's (NCA) online system to submit a SAR.
How to report money laundering in Malaysia?
Use designated STR channels or get in touch with the Financial Intelligence and Enforcement Department (BNM).
How to report money laundering in India?
Reports are made to the Financial Intelligence Unit - India (FIU-IND).
How to report money laundering in Singapore?
File an STR with the. Submit an STR to the Suspicious Transaction Reporting Office (STRO), which is under the Commercial Affairs Department.
How to report money laundering in the Philippines?
Use the reporting system to get in touch with the Anti-Money Laundering Council (AMLC).
How to report money laundering in Pakistan?
In Pakistan, reports should be submitted to the Financial Monitoring Unit (FMU).
How to report money laundering in South Africa?
Submit an STR or CTR to the Financial Intelligence Centre (FIC).
Can I report money laundering anonymously?
Yes. Anonymous reporting is permitted by many FIUs, such as the NCA and FinCEN. Many nations have laws protecting whistleblowers from reprisals.
What protections exist for whistleblowers?
Although laws protecting whistleblowers differ from nation to nation, they typically protect people from harassment, demotion, or termination.
There are even financial incentives for reporting significant financial crimes under certain frameworks, like the US Dodd-Frank Act (which is a U.S. federal law that reformed financial regulation following the 2007-2008 financial crisis).
Conclusion
One of the best ways to prevent financial crime is to report suspicious activity and money laundering activities.
You can truly make a difference if you know what to look for, are aware of your legal obligations, and adhere to best practices.
Whether you're a compliance specialist conducting anti-money laundering investigations or a private citizen concerned about unusual financial activity, your attention to detail safeguards economies and communities.
Every red flag that is found moves us one step closer to a more secure and transparent financial system, so act, report appropriately, and stay updated.
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