Am I unwillingly involved in money laundering?

[mamabird201313]

Ok money laundering might be a bit extreme but I'm wondering if I've been taken for a mug by friend.

So friend and her DH own a shop selling discounted food and during lockdown it's really taken off and they're doing really well (to the point that they're opening another shop next month) Now her DH has always been a bit 'dodgy' and she's briefly told me a bit about tax evasion, selling dodgy goods in the past etc but I've always just decided to mind my own business.

A few weeks ago she transferred me £20 without telling me, and I didn't think anything of it because she owed me money from an event ticket we'd paid for but had been cancelled due to COVID. Then the next day she transferred me about £80. So I messaged her asking what it was and she replied all shocked saying that she thought she'd transferred it to herself so could I send it back to her. (It's worth mentioning here that the reference for the money into my bank said PAYPAL and then her name, and she asked me to send it to her bank account.

Anyway, last week she messaged asking if she could do it again because she didn't have her other bank account set up to do transfers, she only had me set up on there before I could reply she'd sent me £95 so I obviously just had to transfer it back to her.

Now I'm thinking could this be dodgy? Like is she doing this to a few people and is it a way that they're taking money out of the business and sending it to people to try and hide it in some way? Obviously I'm hoping that I'm wrong and I'm just being over dramatic because the thought that she's doing something willingly that could get me in to trouble naturally really upsets me and would ruin our friendship.

So basically I'm asking if this would ring alarm bells to you?

@TehBewilderness

It is skimming with fake refunds, I think. Sell something, customer dissatisfied, refund.

But the money is going the wrong way for that to make sense? It would have to come from the op’s account to hers, then back to the op.

Just tell her the money isn’t showing in your account and keep it. She won’t do it again will she silly bitch.

Go into your bank and speak to someone this morning.

@QueenoftheIceAge - the business would sell stuff as normal. Then they’d pretend they had to refund somebody - so they transfer money out of their account and to the OP, pretending it’s a refund. Their business accounts will show it as a refund so that it looks like they’ve lost that money. Then the OP transfers the cash back to their personal accounts so they end up keeping the cash and pretending their business is less profitable than it really is. It’s money laundering.

Normal accounting checks won’t pick up that the original payment for the stuff cake from a different account.

Perhaps just a glitch concerning her account? Anyway if money laundering - very small time and insecure for her. Also a very poor ''dodge'' indeed! You might hold onto the money!

Why are you even considering loyalty to her when she's clearly using you to commit a crime?

Report, screenshot the messages and have nothing more to do with her. She is not your friend.

Speak to your bank. They have a legal obligation to investigate if they suspect it could be money laundering. If she transfers anymore, leave it and don’t send it back otherwise you could be deemed as being involved. Don’t be involved at all (obviously dont spend it, as it will have to be returned at some point, but if you involve tour bank they can investigate)

Report to your bank and see If they can block it. If they can’t, if she does it again, just tell her the money isn’t in your account so you can’t send it back.

It’s really easy to set up a new account these days. That’ll stop her as long as you don’t use a switching service.

Yes this is money - laundering. The consequences can be serious if you continue to do this and/or if you warn her that you are going to tell the bank.

Have you already transferred the money back? Does she still owe you for the concert ticket?

@Candodad

I’d say she is sending money from the business account to you. She will have created an invoice for something business related and she’s claiming that the business needed to pay for it. Then you are sending the money to her personal account. Doing this means the business shoes less profit and pays less tax.

Agree - i'd say that's a much more likely scenario than cleaning up the proceeds of crime. Tax evasion is still wrong - but HMRC are likely to be more interested in it than the police.

I also don’t think this is money laundering but more likely to be tax evasion, she’s trying to show the business has more expense than it does, thus reducing the tax burden.

You need to request her not to as it may look like you’re earning more than you are, or were complicit in it.

Former bank worker here -

Don't report it to your bank, they have a duty to investigate money laundering and they'll block your accounts.

Just refuse all future transfers or send it back to her email address through PayPal, then it won't benefit her (if you haven't done so already)

Chances are she's creating a fake audit trail and that's nothing you want to be involved in. In future if she just sends you money, "assume" it's a gift and inform her your not sending it back. That'll soon stop her. Best wishes.

Definitely speak to the bank and see if they can’t block transfers from her. I’d also look seriously at changing my account number which will be a pain but the bank should be able to help with that.

I also second the poster who said keep screen shots of all messages from her and the other who said she’s setting you up for a bigger transfer.

Good luck. Hope you get it sorted quickly.

You need something like a call blocker but for your bank account !
Good luck op.

Oh don't panic about people telling you you're money laundering, complicit in crime... Op, you've noticed something suspicious and are dealing with it. Give your bank a ring, they'll sort it out and I suspect will also tell you that they will report it as appropriate. They'll certainly advise you. Mumsnet should be MM - Mountain/Molehill.

Tax evasion is a crime and money-laundering is used to cover it up.

Yes, it is money-laundering.

As PP have said, screenshot all the texts. If she sent it in error then suggest that she contacts her bank's Payments In Error team.

If she asks why you can't send it back hou could tell her your bank account "isn't set up for transfers at the moment".

You haven't done anything wrong. Give her a clear message 'these transfers are odd. I don't know what you are playing at but I do not give you permission to transfer funds to my account'. A message that proves you do not know the details and are not involved.

A friend was doing this. He had a profitable website selling joomla templates or something. If he transferred his funds directly from PayPal to his account, then the taxman would want to see details of his PayPal. So he transferred little amounts to lots of friends accounts then had them send it back, or give him cash if they agreed.

Also money laundering is taking the proceeds of crime, Ie drugs, stolen goods etc and putting it through legitimate channels to effectively make it clean,

Unless the friend is a criminal in that sense it’s highly unlikely to be money laundering and more likely to be tax evasion, they are hiding the business Profits by taking money out,

Personally I’d end a friendship over this,

@Bluntness100

I also don’t think this is money laundering but more likely to be tax evasion, she’s trying to show the business has more expense than it does, thus reducing the tax burden.

You need to request her not to as it may look like you’re earning more than you are, or were complicit in it.

Tax evasion becomes money laundering - it's proceeds of a crime.

If you are involved in money laundering then you could be charged, have bank accounts closed down etc. Make sure you have full audit trail for everything. I am surprised at the above poster saying don't report it as they will freeze your account. It would be short term pain for something that is not your fault, but better than being involved in crime surely?

You need to report it to your bank. There are penalties for not reporting money laundering if you suspect it. You must not tell her you suspect she is money laundering, this is also a crime.

She is very definitely not your friend. Unfortunately there is a strong possibility you will lose access to your account at least temporarily as it will kick off huge red flags for the bank. The bank will also go completely silent on you once you report - they will not be able to tell you anything - due for to the penalties for letting someone know they are suspected of money laundering.

Hopefully someone will come along shortly with more extensive AML experience than me to confirm/refute what I’ve said.

Be aware that if the bank investigate it as money laundering they will put a block on you using your accounts as well as her using hers. Your lack of involvement will come out in the end etc but it can take weeks.