How to avoid being framed by your employer for money laundering?

Did you know that you can be framed for money laundering even in the workplace? This is not only a problem for those who decide to launder cash, but also for innocent people involved in this process. What's more, you can hear more and more about cases where employers use their employees to launder money, and they unknowingly become part of illegal activities.

In this article, we will introduce you to the risks of money laundering in the context of work. At the same time, we will show that employers can try to use their employees for illegal financial activities. You will learn how to protect yourself against dishonest practices of employers and how to recognize suspicious behavior in financial matters. Money laundering is a serious threat that is worth knowing and understanding in order to be able to effectively counteract dishonest practices. We invite you to read!

What is money laundering?

Money laundering is the process of disguising the origin of money derived from illegal activities, such as drug trafficking or corruption offences. The purpose of money laundering is to obtain "clean" money that appears to come from a legitimate source.

An example of money laundering at work may be the following situation: an employee is asked by the employer to make secret financial transactions, without explaining their nature. To do this, he deposits money into various bank accounts or receives payments from customers in cash of unknown origin.

Then, this money can be transferred further as part of illegal financial operations. At the same time, the employee participating in these transactions is not aware of their illegal nature. As a result, such a person may unknowingly become part of money laundering, which may result in serious legal and financial consequences. That's why it's so important for employees to be vigilant and avoid suspicious bank transfers at work.

The General Inspector of Financial Information (GIFI) deals with counteracting the practice in Poland. This entity operates on the basis of the law enshrined in the AML (Anti-Money Laundering) Act. The procedures under this Act are designed to prevent criminals from concealing the origin of their illegally earned funds.

Consequences of unknowingly participating in money laundering

When recruiting for a new job, there is a risk that you may be framed for money laundering. How?

Suppose you receive a contract of employment and are asked to enter your bank account number. The employer then informs you that you will receive a sum of money in your account that you need to transfer, ostensibly to expedite the transport of cargo moving around Europe. However, you are not aware that your employer accepts money from customers in the form of bribes and wants to launder them, and use you as a "fool".

If you follow these instructions, money from illegal sources will flow into your account and you will commit the crime of money laundering. Such action can result in a hefty fine of up to €1 million and imprisonment from 3 months to 8 years.

Money laundering is an activity whose consequences can be observed in the global economy. Such illegal money-related activities undermine the stability of the international financial system. 

According to a Deloitte report from 2020, it is estimated that between 715 billion and 1,87 trillion euros are laundered annually, which is about 5% of global GDP.

What can I do to avoid getting involved in money laundering in the workplace?

There are many steps you can take to strengthen your protection against money laundering. By following them, you will be able to easily avoid illegal financial activities in the workplace.

• Watch out for dubious job offers - scammers often look for "profiles" to perform seemingly legal and simple work, when in fact they are just an element of illegal money laundering.
• Verify the most important information about the employer, its activity and registration before starting work. You can check the data in the Central Registration and Information on Economic Activity (CEIDG) - all you need is the company's NIP number, available on the Internet.
• Carefully read contracts and financial documents before signing them, and pay attention to any suspicious clauses or provisions.
  
• Educate yourself on anti-money laundering. There are many articles and educational videos created by Kanga Exchange to learn more about this topic.
• Be alert to suspicious signals, such as requests to make a transaction without substantiating its purpose. Avoid participating in financial transactions where the purpose or source of funds is unknown or suspicious.
• Inform the relevant authorities and financial institutions about suspicious activities of the employer, you can report your suspicions to the GIFI.

You already know that money laundering is a crime harmful to the economy. It can have serious consequences not only for criminals, but also for innocent people who may become unknowingly involved in their activities. Even employers can use their employees to carry out illegal financial activities. Therefore, it is important that you are vigilant and avoid suspicious financial transactions in the workplace. Remember that knowing the risks associated with the discussed procedure, you can effectively protect yourself against them. 

To stay up-to-date on money laundering issues, use reliable sources of information. One of them is a social campaign 

No Pie(p)rz, run by the Kanga Exchange cryptocurrency exchange. The Polish platform periodically publishes articles, posts in social media and videos that aim to educate in the field of counteracting money laundering and other frauds. Thanks to these materials, you will gain awareness about the ways criminals operate and you will know how to protect yourself from them.

Author: Zuzanna Kwiecień, Kanga Exchange