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?

Your friend is Broke, she is transferring money from her pay credit account to you. It's a quick way to get money with out messing about with sort term loans. Don't lend her any money.

Say you have money in your business that you don't want to pay tax on. Simple answer - pretend that some of it is business expenses paid out. Forge some simple but believable paperwork.

Pay the money out of the business to a 'friend' who then transfers it to your personal account, usually after taking a small commission.

As if HMRC and the VAT people don't know this one.

If you’re really worried OP you could file a Suspicious Activity Report (SAR). These are confidential and anonymous and it’s really important that you don’t tell anyone that you have submitted, especially the person / business that you are reporting - this is called ‘tipping off’ and is an offence and you would face severe penalties. SARs are filed with the NCA, they would then investigate if they deemed the actions you describe to warrant further investigation and prosecute if they discovered anything untoward. In reality they most likely have bigger issues to deal with but at least you will have done your duty and should anyone ever investigate you, you can show that you filed a report given your concerns. The NCA would not communicate with you and it’s unlikely you would ever know whether they had chosen to investigate.

If you’re concerned it’s really important you don’t send any money back - tell her your account has been frozen pending investigation.

For more information see:

www.nationalcrimeagency.gov.uk/what-we-do/crime-threats/money-laundering-and-illicit-finance/suspicious-activity-reports

Good luck x

Hello,

Speaking as a Fraud and Error Officer, not reporting is a big NO. You need to contact the Fraud hotline.

Your friend has her business transactions through E-bay, and directly putting them into her account it will be a business transfer. Putting them in your account and transferring them to her account is how she is getting away with it.

However, all money transactions are recorded under your National insurance number's. This is how we catch people. If she has her NINO on PayPal or her business or with HMRC...they produce an RTI with all bank accounts involved.

Your friend doesn't give a fudge about getting you in trouble, so don't give a fudge back when you repprt her to the Fraud Hotline.

Similar happened to a friend of mine. Her friend, A, behaved just like your friend, transferring money etc. A’s husband is now serving a jail term for fraud. A almost went to jail herself too.
I would distance yourself straight away.

If your is the only card on her paypal then if she is selling things and doesn't send them you could be liable to pay her customers back and if you dont they can awnd you court action letters, shes basically trying to make you the only paper trail on that account I'd call paypal and explain your card is on a paypal account without your knowledge and also I would get a new card asap.
I don't know if this is what she is doing but it all sounds dodgy so even if it isn't this I would still ring paypal. And I would also stop sending her the money until you know where and why it has come about

Sounds dodgy, I would tell her to stop

Sounds like she needs cash. She could have her credit card attached to her PayPal so she pays you via PayPal and the funds are deducted from the credit card. You then transfer her cash. She avoids a charge for withdrawing cash on her credit card.

Tax evasion is a predicate offence for money laundering in the UK (ie tax evasion is a crime, the proceeds of which can form the basis of a money laundering offence). No prosecution for tax evasion is required in order to bring a charge of money laundering.

Holy crap. I'm guessing your 'friend' is creating invoices for (fake) services that you are providing. She pays you, and then asks you to send it to her private account.

Inform HMRC, and the police. Either way, your account could be suspended whilst there is an investigation. That's the best outcome situation. The worst is where you don't inform anyone, and someone else does... And the police find a trail for fake services that you've provided. Thank your friend for involving you in illegal activities. This could lead to more serious issues for you in terms of future finances(bank/mortgage), insurance (due to the possibility of gaining a record), job prospects, etc.

Deffo report.

You would be liable if you are knowingly involved in money laundering activity. Report it to national crime agency anonymously and just say to your friend that you’re budgeting carefully and this isn’t helpful so would rather not do it.

Trust your instincts. When you stack up all the information it sounds wrong.

They may be struggling for money short term. PayPal do a bit now pay 14 days later. So means they can send PayPal money to you and pay for it later. A lot of those in debt use it by paying a friend or someone for so.wtjing via.paypal on a pay 14 days later agreement. You get it instantly They then ask the person to send it back via a bank transfer. Meaning they get the money during the 14 days before they expect to get paid and have effectively borrowed from themselves. By using you. It is however against PayPal rules and considered to be fraud. So dont get involved. If they do send you anything in future refund it via the refund optionbto send it back. It'll go back the same way it came, via PayPal. Tell friend it won't allow you to do anything else as it's flagged it as a suspicious transaction. She will sharp stop.

Yes, this is the initial stage of money laundering, the placement stage where proceeds of crime enter into the financial system. She knows what she is doing and trying to involve you is despicable! You need to cut ties with her. I would be wary about speaking to your bank as they have to report this, even if the amounts are small.

Just tell her to stop!
In terms of what’s she’s doing - is the money coming from her company bank or her personal one? It sounds to or like the latter and assuming they own a limited company this likely has sod all to do with tax evasion or money laundering. More likely trying to get cash from a credit facility.

Did you call their Fraud number?

When you talk to the bank, first give the basics to say you've been receiving odd amounts and requests that those sums be returned. Ask them to put a flag on Your account to decline/reject payments from that source. Good luck x

Your friend might be using small amounts to test the water before sending larger amounts.

Well based on those figures I don’t think Interpol are going to get involved.....

You should also be careful not to ‘tip off’, ie make your friend aware that you have reported. That in itself is an offence. Sorry, it’s not nice to deal with, but just do an anonymous report to NCA and that’s the end of it.

Can you casually say to mutual friends that friend has sent you money by mistake. See if anyone else pipes up.

It aounds like money laundering or some other illegal activity. You need to make a report, or you are probably committing a criminal offence and YOU could get arrested.

You can protect yourself by making a report. If she’s doing nothing wrong then nothing will happen as a result of your report.

Also ditch her as a friend asap. Friends don’t involve friends in money laundering then lie about it. She is not your friend, you are someone she is using.

I’d tell her you got a new bank account and no longer have access to your old one so please don’t send money anymore or she won’t get it!

@Bluntness100

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,

Tax evasion is illegal therefore can also be considered money laundering as its profiting from illegal activity

If like you say direct debits etc come out of your husbands account I would just close your account and set up a new one. What a horrible thing to do to a friend, I would be giving her a wide berth!

If she does it again then I’d just refund it rather than putting it into your bank account to transfer!

Thanks for all the advice everyone! I've reported it to Action Fraud today so at least I know I've done something and if it is money laundering/tax evasion I can prove that I wasn't willingly involved and reported it ASAP.

I've also decided to distance myself from her for good. I have enough good, loyal friends in my life who would never involve me in anything dodgy or illegal so I don't need users like her who clearly don't care about me.

And we can all be witnesses for you op - imagine !
Well done for reporting.