Rapid Fire
Mule Accounts for Money Laundering
- 01 Nov 2024
- 1 min read
Recently, the Union Ministry of Home Affairs has issued an alert about illegal payment gateways like PeacePay, RTX Pay etc set up by transnational cybercriminals using mule bank accounts for money laundering.
- A mule account is a bank account used to facilitate illegal activities.
- A money mule is someone who transfers or moves illegally acquired money on behalf of someone else.
- Transnational cybercriminals use accounts of shell companies and individuals as mule accounts, exploiting the bulk payout facility provided by banks.
- A shell company is a company without active business operations or significant assets.
- They are not all necessarily illegal, but they can be used illegitimately to conceal business ownership from law enforcement or the public.
- The Bulk Payout facility offered by banks allows businesses and organisations to make multiple payments to various beneficiaries in a single transaction.
Read More: Money Laundering
