What is a Cash-Intensive Business
A cash-intensive business is one where customers primarily use cash for transactions. These businesses, like restaurants and taxi firms, are vulnerable to money laundering. Let's explore cash-intensive businesses, their characteristics, and AML implications.
What is a Cash-Intensive Business?
A cash-intensive business is characterised by a high volume of cash transactions. Customers typically pay for goods or services using cash, making it challenging to trace the origin and flow of funds. Examples include restaurants, taxi services, car washes, and coin-operated machines.
What are Cash-Intensive Businesses in the UK?
In the UK, cash-intensive businesses include:
- Restaurants and cafes.
- Taxi and private hire services.
- Laundromats and car washes.
- Retail stores, particularly smaller, independent shops.
- Gaming and amusement arcades.
Which of the Following is Considered as a Cash-Intensive Business?
Businesses that primarily conduct transactions in cash are considered cash-intensive. This includes those where cash is the primary form of payment, as opposed to businesses that accept a mix of payment methods.
What is a Cash Business?
A cash business is essentially synonymous with a cash-intensive business. It refers to any enterprise that predominantly deals in cash transactions.
Cash-intensive businesses are particularly vulnerable to money laundering because it is easy to combine illicit funds with legitimate cash revenue. Robust AML procedures, and KYC, are vital for these types of business. Services such as SmartSearch can assist in identifying high risk clients, and provide up-to-date client information.
