Debt collectors and money laundering

[righty]

Debt collectors & those lawyers who act for them may (unwittingly) become involved in money laundering. The reason being that criminals are ‘inventing’ outstanding debts which are then collected (usually in cash) then washed through the accounts of the solicitor or DCA before being paid to the ‘creditor’:cry:
Therefore in order to avoid criminal money laundering charges both should, as part of their due diligence, ensure they know who their clients are & that the debt is genuine.

[Tommy]

Re: Debt collectors and money laundering

I work for a DCA or three, most 'clients' are big banks/companies ect. We wouldnt collect a debt for you that your brothers ex girlfriend owed you for example.
Are you suggesting 'criminals' are inside the banks for instance putting out fake accounts to be recovered and the filtering the cash back from the 'clients account'?
I guess if it was millions it might be worth it, but that would be a hell of a lot of work for the trouble!
The only time i need to fill in money laundering forms etc is for cash over £1000 (company policy) or if I beleive there is reason to suspect, ie they normally pay small amounts/struggle to pay, house smells of drugs etc...

Something that would cause concern though, one company i work for allows me to pay cash into my own account and bank it weekly to the company by my personal debit card... added to that Santander know i do this too...

[righty]

Re: Debt collectors and money laundering

The 'debts' will usually arrive with the DCA via solicitors who are themselves being hood-winked & yes their are some genuine crooks who have infiltrated financial institutions & no your not indemnified just because the 'debt' came via a respectable source its upto each company involved to ensure the money is not the result of criminal activity