Why Knowing your Client can Prevent Prison Sentence!

Here I break why it is extremely important to know your client when doing business. When college students graduate from their master/doctor program they learn a topic where they explain that knowing your client can prevent jail time. The reason is simply fraud which could happen unknowingly on your behave. For example, a client comes to you to file their tax returns, but they omit the information where their income comes from. Next thing you know you have federal agents knocking on your door with a search warrant. Keep in mind they don't have to pay you for any damages that occur from that search warrant, not to mention reputation damage. Then you find out that your client was avoiding sales tax or some type of fraud. In that case, they can pin a case against you for assisting in fraud which could land you a hefty fine or even jail/prison sentence.

Here are some steps you can take to lower your risk against these clients:

1) If you work in a business that involves large money transfers e.g. real estate, CPA, casino, and other types of money transfers. Keep in mind people you meet.

2) Set up a Red Flag system. Meaning that if your client is hiding information from you which is important such as how does their income come in and are you a foreigner and etc. If they don't answer your questions then don't take them

3) If you have a hunch that your client commits fraud or deals in shady business, fire them immediately. It's not worth the extra money just to take this risk.

4) They usually act like scumbags. For example, when taxes are due, they give their work to you the day before it's due. Mainly give you a hassle or ask questions that don't align with how a businessman would ask.

Видео Why Knowing your Client can Prevent Prison Sentence! канала Michael Quan