Money laundering is the process of making illegally obtained funds appear legal or legitimate. Examples of illegally obtained funds include:
proceeds from drug trafficking
human trafficking and other types of organized crime activities
bribery and corruption
As an investment group, a crucial step to prevent money laundering is to consider:
Do I know the source of funds for each of my investors?
Have I received any documentation or proof to verify the source of funds?
Is the owner of the funds in a position to have obtained the funds legally?
If the answer to these questions is no, this is a red flag. 🚩