What is one action that should be avoided when dealing with suspected money laundering?

When dealing with suspected money laundering, it is crucial to maintain confidentiality regarding any suspicions and the actions taken in response to those suspicions. Tipping off a client about a report that has been prepared or is being submitted can obstruct investigations and is generally illegal under anti-money laundering legislation. It compromises the investigation process by potentially allowing the client to take evasive action, destroy evidence, or further conceal illicit activities.

In contrast, reporting to the firm’s money laundering officer, documenting transactions thoroughly, and reviewing past transactions for patterns are important and appropriate actions. These steps ensure that the organization complies with legal obligations and can effectively address any suspected money laundering incidents. This is essential not only for protecting the integrity of the firm but also for contributing to broader efforts against financial crime.