Cash-Intensive Businesses (2024)

FAQs

Cash-Intensive Businesses? ›

A cash-intensive business is one that receives a significant amount of receipts in cash. Examples of cash-intensive businesses include: Convenience stores. Restaurants. Retail stores.

Cash-Intensive Businesses

These businesses typically handle large volumes of cash through everyday operations, such as pubs, car washes or retail shops. Criminals can use these businesses to deposit and process their illegal cash, making it difficult for authorities to trace the original source.

Cash intensive businesses include restaurants, grocery stores, and gas stations. They also include businesses like construction and trucking companies that tend to pay independent contractors in cash.

A cash intensive business is one that receives a significant amount of receipts in cash. This can be a business such as a restaurant, grocery or convenience store, that handles a high volume of small dollar transactions.

Common examples include, but are not limited to, the following: Convenience stores. Restaurants. Retail stores.

If you run a cash intensive business such as a restaurant, salvage yard, check cashing business, pawn shop, jewelry store, or parking garage and are facing an IRS contact the experienced tax lawyers of the Tax Law Offices of David W. Klasing today.

Because the hotel business is a cash intensive operation, the hotel risk criminals paying for their bills with ill-gotten cash.

Real Estate is a very cash intensive business, and the money you get from rent or from selling real estate, does not always cover the debts.

Is farming a cash intensive business? ›

Farming is a cash intensive business that can consume hundreds of thousands of dollars a year in crop inputs alone.

Cash Intensive Businesses: Casino Money Laundering

The casino scheme works by funnelling the money through gaming. The money is converted to casino chips, which are then briefly played and then transferred back into cash. The chips may be converted by the launderer or by a proxy.

Red flags of money laundering in cash-intensive businesses

You can look for the following signs: Repeated and excessive transactions with one party, entire payment in cash. A business requiring or generating more cash than a business in a similar location, business model, and product/service.

Smurfing involves splitting large sums of money into smaller, more easily concealable amounts of illegally obtained funds to avoid detection by authorities, while structuring involves deliberately depositing cash in smaller amounts to avoid reporting requirements.

Cash-intensive businesses, such as convenience stores, restaurants, retail stores, and parking garages. Ship, bus, and plane operators. Telemarketers. Private banking.

Here are some common money laundering scheme examples:

Smuggling cash to deposit in a foreign financial institution. Creating shell companies and channeling money through business accounts. Purchasing high-value goods and reselling them to legitimize the profits.

For example, you have $30,000. Instead of depositing it into your account, you intentionally (and for the purpose of avoiding detection/reporting by the bank) spread out the deposits over several days. Structuring is a global issue not limited just to the U.S. Many countries have similar rules in place.