Many employees unknowingly engage in common workplace activities that could implicate them in financial crimes. Globally, companies lose about 5% of their annual revenue to employee fraud. The following are five such activities that can potentially lead to legal issues:
- Opening business accounts with personal information or depositing company checks into personal accounts: Even if done unknowingly, these activities can lead to charges of money laundering.
- Cash-only vendor payments: Though they might seem like a good way to save on fees, they can be exploited for money laundering. If criminals use your company to launder illegal funds, you could be charged with facilitating the crime, irrespective of your knowledge.
- Processing multiple transactions just below $10,000 or splitting larger payments: These practices are known as "structuring" or "smurfing” - deliberate attempts to evade law enforcement scrutiny.
- Processing inflated invoices or vague payments to vendors: Such activities can easily facilitate money laundering through over-invoicing schemes.
- Using company credit cards for personal expenses: Even if you plan to repay, this is considered embezzlement. Federal authorities don't distinguish between temporary use and outright theft.
To avoid potential legal issues, maintain detailed records of any suspicious requests or activities, and consult with your company’s legal department or compliance officer if anything seems unusual. Rather than unwittingly becoming part of a federal investigation, always ask uncomfortable questions if you have any doubts.