This post was originally published on Fin Extra
How can the money mule problem be addressed, particularly its impact on financial institutions?
What practical applications should be discussed when considering the benefits of addressing the issues with money mules?
How have money mules evolved and how has this form of fraud become more sophisticated?
What regulatory changes in the UK have led to more focus on inbound payment monitoring?
What are the challenges of detecting the activities of mules and the need for continuous monitoring at different stages, such as onboarding or transacting?
The impact of money mules cannot be overestimated. Money mule networks launder as much as $1.6 trillion a year globally.
Money mules substantially contribute to money laundering crimes, removing colossal sums of illicit funds from the legitimate economy, stripping governments of tax revenue and thwarting economic growth by diverting capital away from productive investments, ultimately shrinking a country’s GDP. The National Crime Agency (NCA) estimates that over £10 billion is laundered via money mule activity in the UK annually. Alongside this, in 2022, UK banks identified over 39,000 accounts that demonstrated behaviour that was indicative of money muling.
It is evident that a cross-sector response is required to mitigate money mule activity
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