Manufacturing
KYC & AML Software for Manufacturing Companies
The manufacturing industry is one of the largest in the world. It has a global reach and plays a major role in import and export activities. Because of the tremendous reach of the manufacturing industry, it has also become a target for financial criminals including money launderers. In the manufacturing industry, money launderers will attempt to clean dirty money using large assets in the manufacturing industry. For this reason, it is critical for manufacturers to guard against this activity.
Truth Technologies is dedicated to guarding businesses, including manufacturers, against money launderers and financial criminals. We are one of the premier platforms for AML services. Please learn more about how we can help you and your business guard against money laundering in the manufacturing sector.
What is Money Laundering?
When people hear the term money laundering, they often think about large financial institutions that operate on Wall Street. Unfortunately, this is also a big problem in the manufacturing sector. There are a few ways that money laundering takes place in the field of manufacturing. These include:
- Trying to conceal the source of dirty money as a shell manufacturing company
- Using dirty money to buy large amounts of manufactured goods before selling those goods for clean money on the other side
- Falsely claiming tax credits and deductions in the manufacturing industry for certain business practices that might not be taking place
- Making deals with other manufacturing companies and taking a "kickback" from that partnership while shielding those assets overseas
In any money laundering deal, including manufacturing, the goal is to clean the money with legitimate manufactured goods. Manufacturers need to take steps to protect themselves against this activity.
Why the Manufacturing Sector
There are a few reasons why money laundering takes place in the manufacturing sector. Some of the biggest factors include:
- Valuable Assets: There are valuable, expensive assets in the manufacturing industry. This makes them a target for people trying to hide laundered money.
- Global Industry: Manufacturing has a global reach. This means that large transactions over national borders are seen as normal.
- Large Transactions: It is not unusual for large transactions to take place in the form of orders and partnerships. Therefore, this makes it easier for criminals to launder large amounts of money quickly.
Manufacturing is vulnerable to money laundering. Therefore, everyone needs to take steps to protect themselves.
Money Laundering Rules and Regulations in the Manufacturing Sector
Manufacturing companies need to make sure they remain in compliance with any rules and regulations in relevant jurisdiction’s. There are regulations regarding anti-money laundering measures that have been put into place by FINRA and the United States government. Some of the key examples are:
- Manufacturers need to have a robust anti-money laundering program with a manager in place
- Any suspicious financial activity must be reported to a designated compliance officer immediately
- Continuing training sessions must be provided to help everyone stay up to date on money laundering practices
- The anti-money laundering program needs to be tested on a regular basis by independent entities
- Manufacturing companies must have accurate contact information for their compliance officers listed in the FINRA contact system (CS)
All manufacturing companies must comply with these regulations. If not, large fines and sanctions could be levied by FINRA and the US Government.
Red Flags for Money Laundering in Manufacturing
In manufacturing, there are a few red flags that could indicate the presence of illegal financial dealings, such as money laundering. A few examples include:
- Someone is trying to purchase manufacturing equipment that appears to be outside their scope of work
- An individual is unwilling to provide ID before carrying out a deal
- A company is trying to get involved in a sector with large amounts of money even though it has no prior experience in that sector
- A business is trying to carry out a large deal with overseas cash
Fortunately, there are steps that manufacturers can take to protect themselves.
Know Your Customer (KYC) Policies in Manufacturing
Know Your Customer (KYC) is a key tool in the manufacturing sector. Because manufacturers regularly operate across national borders and boundaries, they need to know exactly who they’re dealing with. This helps them guard against illegal financial activities and manage their risk. Through KYC, manufacturers can collect all of the necessary information on a potential customer or business partner before entering into a relationship with that entity. Some of the important information that is collected via KYC include:
- A potential business partner's source of income
- That person's complete financial portfolio and background
- A verified identity
KYC is a key portion of anti-money laundering (AML) policies.
High-Quality AML Screening from Truth Technologies, Inc. (TTI)
When it comes to anti-money laundering (AML) surveillance and protection, Truth Technologies is among the leaders. With experts in AML, compliance, anti-fraud, and consumer verification, we can provide you and your business with key AML protection. Some of our benefits include:
- Reliable customer service representatives who can answer questions and address concerns
- Cross-checking using international databases and global watch lists
- A reduced need to manually review matches thanks to continuous customer monitoring features
- Batch efficiency is used to screen multiple entities a once without requiring any manual entry
- Novel due diligence, automated reporting, and quicker updates
- Increased compliance with regulations from Canada, the European Union, and the United States
Increase AML Protection with Truth Technologies Today
If you are interested in advanced KYC or AML protection for your manufacturing business, give us a call today. We also offer free tool demos that you can try. Put your faith in TTI to protect your manufacturing organization against financial crimes and money laundering.