It is very easy for companies to try to launder money through a debt collection company. Firstly company (A) approaches the collection company and asked them to collect a debt from company (B). Often one or both companies are out of the UK. With little effort from the collection company, the debtor company in this case (B), agrees to pay the collection company. More often than not a cheque will be sent to the debt collection company. They clear it through their account, take their agreed percentage and release the funds to company (A). Job done, the money is laundered. The amounts in question are usually enormous and alarm bells ring when approached because of the size of the collection and the ease with which it is collected.
Recently we at Debt Collection were asked to collect $650,000 from a company in Norfolk. We were approached by an American Lawyer who operated out of Hong Kong. The interesting part here is that when we contacted the company in Norfolk. They had never had dealings with a Chinese company. The Lawyer who contacted us particularly asked us not to contact the debtor however they would forward us a cheque for $289,000, could this be possible? Well of course not, we were asked who the cheque should be made payable to and where should it be sent. Quite ridiculous and obviously we refused to do business with the Chinese firm of Lawyers.