Day 65: Credit Cards

#QuickBiteCompliance Day 65

🔍 How Can Credit Cards Be Misused for Financial Crime? Let’s Simplify It!

Imagine this: You have a magic card that lets you buy anything—clothes, toys, or even ice cream—but you don’t need to pay for it right away. That’s what a credit card does. You buy now, pay later.

Most of us use credit cards the right way. But bad guys? They have sneaky tricks! They use credit cards to “clean” dirty money they earned through crime (like selling drugs or stealing).

Here’s how:
1️⃣ The Sneaky Payment: They use dirty money to pay off their credit card bill, making it look “clean” and legal.
2️⃣ Fake Purchases: They might buy expensive stuff—like watches or gadgets—and sell them for cash. That cash looks normal, but it came from crime!
3️⃣ Overpayments: They pay way more than what’s due on the credit card and get a refund. To the bank, the money now seems legit.

This is called money laundering—washing dirty money to make it seem clean. It’s a big no-no! Banks and anti-financial crime experts work hard to catch these tricks and stop the bad guys.

💡 Credit cards are convenient, but they can be misused. Always think twice if something looks fishy!

#FinancialCrime #MoneyLaundering #AntiMoneyLaundering #AML #CreditCardFraud #StayVigilant #FinancialSecurity #Compliance #InclusiveRegtech #OpenSourceAML
Source: https://www.acams.org/en/resources/aml-glossary-of-terms