Not only that there is no downside for banks but they actually profit much more from money laundering than from most legitimate transactions (relative not necessarily absolute) because of how layering works and the sheer amount of transactions and entities which are involved in the process.
The only people who get hurt are the patsies whether low to mid tier bank employees who are left hanging in large case or the victims of the laundering process which can be tricked into participating in the process through deception e.g. P2P loan schemes and transfer schemes or those who are employed by shell entities used in layering.
If you are getting flagged for money laundering you are utterly fucked.
You can’t access any of your accounts, your credit is frozen, even if you by some luck don’t lose your employment even your paycheck can be directly or indirectly withheld and you will be audited by your friendly tax authority.
The shadow economy is huge in many places it can be as large or even larger than the real economy and many nations including EU members actively support it because they rely on it.
The only people who get hurt are the patsies whether low to mid tier bank employees who are left hanging in large case or the victims of the laundering process which can be tricked into participating in the process through deception e.g. P2P loan schemes and transfer schemes or those who are employed by shell entities used in layering.
If you are getting flagged for money laundering you are utterly fucked.
You can’t access any of your accounts, your credit is frozen, even if you by some luck don’t lose your employment even your paycheck can be directly or indirectly withheld and you will be audited by your friendly tax authority.
The shadow economy is huge in many places it can be as large or even larger than the real economy and many nations including EU members actively support it because they rely on it.