Is this money laundering?
- Thread starter James07
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Soldato
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A friend of mine transfers money to her mothers bank account a couple of times a year, approx 60-70% of her yearly salary.
This is to help prevent her spending it and has done it for over 5 years as eventually she wants to buy her own house, but today a call was made from the bank regarding investigation into money laundering.
She's worrying and I said I'll try seek some free advice for her
Regardless of how your friend has earned that money it can never be money laundering.
Simply transferring funds from account A to B to C is not money laundering.
Lots of people don't use money laundering as the definition of cleaning dirty money, anymore. It's used in a blanket sense to cover many kinds of crime involving currency, especially in the infancy of investigations.
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Now that would be telling
I believe that bank staff are supposed to subtly enquire about large deposits & withdrawls to see if their suspicions are raised, but I've always taken this as nosyness and given a noncommittal answer, if any at all.
"That's a lot of money" or "Are you buying anything nice"
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Its only money laundering when tax has not been applied to the money when it was received as income or inheritance etc.
The money laundering laws are realy just about tax avoidance. The pretend its about stopping criminal activity but realy its about tax evasion. The reason people don't pay tax on money received from illegal activity is because it could lead to the illegal activity being found out. So that is why generally people who launder money are doing so with money received from illegal activity. But if you receive money and do not pay tax on it from the perspective of the state you are a criminal. But end of day the state just wants to stop people receiving money without them having a share of it. If you can receive money from illegal activity and clean it and pay tax on it then the state won't care.
Disclaimer: i do not support or encourage any illegal activity. The information above should not be taken as legal or financial advice.
The money laundering laws are realy just about tax avoidance. The pretend its about stopping criminal activity but realy its about tax evasion. The reason people don't pay tax on money received from illegal activity is because it could lead to the illegal activity being found out. So that is why generally people who launder money are doing so with money received from illegal activity. But if you receive money and do not pay tax on it from the perspective of the state you are a criminal. But end of day the state just wants to stop people receiving money without them having a share of it. If you can receive money from illegal activity and clean it and pay tax on it then the state won't care.
Disclaimer: i do not support or encourage any illegal activity. The information above should not be taken as legal or financial advice.
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Yes its insane. The banks caught rigging libor rates and currency markets and launder billions of dollars. But if you a worthless peasant decides to put £20000 in your own bank account you get accused of being a criminal.
That's why if i received some money legitimately i would just send half to the state. They going to end up taking half of it anyway. Might as well make it easy for them.
That's why if i received some money legitimately i would just send half to the state. They going to end up taking half of it anyway. Might as well make it easy for them.
So if the mother dies, she will have to wait to get her own money back and potentially pay inheritance tax on it?
There is no problem if the money is the mothers.
The problem lies when the money is still the daughters as then the daughter is using her mothers account which isn't allowed.
A safe solution would be for mother and daughter to have a joint account where withdrawals require both parties. This prevents the "spending money" concern, but gets around a lot of the "money laundering" concerns and should anything happen to her mother, the money would be the daughters by default.
The problem lies when the money is still the daughters as then the daughter is using her mothers account which isn't allowed.
A safe solution would be for mother and daughter to have a joint account where withdrawals require both parties. This prevents the "spending money" concern, but gets around a lot of the "money laundering" concerns and should anything happen to her mother, the money would be the daughters by default.
The bank will report to HMRC every year anyhow to say how much interest has been paid.
That is where an issue may arise.
Who's being taxed on the interest?
A friend of mine transfers money to her mothers bank account a couple of times a year, approx 60-70% of her yearly salary.
This is to help prevent her spending it and has done it for over 5 years as eventually she wants to buy her own house, but today a call was made from the bank regarding investigation into money laundering.
She's worrying and I said I'll try seek some free advice for her
no it isn't a crime to let someone look after some money for you, no she isn't 'money laundering' your friend is just a retard
But she is avoiding paying Tax on HER savings. Which is a crime.
We don't know the sums involved but what if she's planning on buying a £500k house with cash and has saved £450k so far. The interest could push her into another Tax bracket and she could be evading tax running into several £000's
Now that would be telling
I believe that bank staff are supposed to subtly enquire about large deposits & withdrawls to see if their suspicions are raised, but I've always taken this as nosyness and given a noncommittal answer, if any at all.
"That's a lot of money" or "Are you buying anything nice"
Well ill be dammed and I always thought they were just being friendly when they asked those questions, Next time I'm going to say it's too fund a terrorist organisation that I believe in.