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Money laundering and the MLRO

06 Jul 2020

“One of the concerns of a fraudster/criminal, who holds illicit money, is how to dispose of it or spend it without giving the crime away!”

What does MLRO stand for?

MLRO stands for Money Laundering Reporting Officer and refers to a person responsible for ensuring that any information or other matter that could be suspicious or where there are reasonable grounds to believe that money is being laundered, is duly stopped and reported.

Money laundering itself refers to the concealment of the origins of illegally obtained money, disguised in such a manner as to appear to have been derived from a legitimate source thus the term “laundering”.

The stages of the laundering process

The stages involved in the laundering process can be classified accordingly:

  • Placement and refers to the moving of money from the source and putting in into circulation, fragmenting it in the process.
  • Layering involves moving the money around to further distance it from the original source, usually using different countries.
  • Integration is the process by which the laundered money makes its way back into the mainstream economy with the appearance of a legitimate source of funds. It is here that the money launderer turns to the financial services industry in order to buy legitimate financial products such as life assurance which has an investment element linked to it, making it more attractive.

The Malta International Training Centre

The Malta International Training Centre (MITC) provides training for the achievement of an NCFHE recognised award in anti-money laundering (AML) and other sessions on the role of the MLRO by periodically organising CPD talks and seminars to assist those in the area of money laundering keeping them abreast of the developments in this field.

For more information about the CPD: The Role of the MLRO click here.