In the world of finance there are certain grey areas that defy definition and if they occur often go to the courts. However, there are two areas of finance that are thought of as clearly wrong and illegal. These are Money laundering and tax evasion. However it cannot be said that both are the same thing. Here are the reasons why. It is true to say that if found guilty of doing them you or your accountant and financial advisor will face punitive action and a possible prison sentence.
Money laundering is the act of trying to take money illegally obtained and place it in the mainstream economy. Banks and building societies are the usual targets for this when criminals attempt to open bank and savings accounts or they try to use a large sum of cash as a deposit. It’s why financial services buy AML IDENTITY VERIFICATION, like those from https://www.w2globaldata.com/regulatory-compliance-solutions-and-software/aml-id-checks/ to protect them and us. Another attempt at money laundering is to buy large luxury items only to sell them quickly for the cash, which is easier for the criminals to invest elsewhere.
Tax evasion is the act of attempting to avoid paying tax that is legitimately owed to the HMRC either through earnings and dealings. For the most part this is either hiding income in offshore companies and savings schemes or just plainly lying about what you have actually earned by misdeclaring the amounts.