Money Laundering
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- Date Submitted: 02/19/2011 03:22 AM
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Money Laundering
As the world turns to globalization, and financial transactions ease business dealings at a touch of a key, criminals too have identified the potentials and advantages of using the same processes in financing their activities. What more, terrorist organizations use money laundering techniques, to avoid international sanctions on their assets, thus, helping to finance more of their criminal pursuit. This is, however, not an exclusive domain of terrorists. Other individuals such as those involved in serious criminal conduct, illegal arms sales, smugglers and drug traffickers also enjoy the proceeds of money laundering without paying taxes on their ill-gotten funds. The goal for money laundering, therefore, is to turn dirty money clean, and move it in circulation.
At most, the ease of global financial transaction has given criminals the speed, convenience and anonymity to money launderers. Despite controlling legislations existing; new ones created as soon as new financial crime or events unfold; passing through the loopholes of existing laws, the practice appears to be on the rise. Indeed, the pressure to control, contain, if at all possible, eradicate money laundering has taken on a different sense of urgency.
The Core Guidance of Money Laundering Regulations 2007 describes the activity as “the process by which criminally obtained money or other assets (criminal property) are exchanged for clean money or assets with no obvious link to their criminal origins.” In simpler terms, it can be defined as “…the acts concerned with concealing, disguising or transferring out of the jurisdiction funds derived from drug trafficking, terrorism or criminal conduct.” A more precise definition can be found in Black’s Law Dictionary where it states that it is the “investment or other transfer of money flowing from racketeering, drug transactions, and other illegal sources into legitimate channels so that its original source cannot be traced.”...
As the world turns to globalization, and financial transactions ease business dealings at a touch of a key, criminals too have identified the potentials and advantages of using the same processes in financing their activities. What more, terrorist organizations use money laundering techniques, to avoid international sanctions on their assets, thus, helping to finance more of their criminal pursuit. This is, however, not an exclusive domain of terrorists. Other individuals such as those involved in serious criminal conduct, illegal arms sales, smugglers and drug traffickers also enjoy the proceeds of money laundering without paying taxes on their ill-gotten funds. The goal for money laundering, therefore, is to turn dirty money clean, and move it in circulation.
At most, the ease of global financial transaction has given criminals the speed, convenience and anonymity to money launderers. Despite controlling legislations existing; new ones created as soon as new financial crime or events unfold; passing through the loopholes of existing laws, the practice appears to be on the rise. Indeed, the pressure to control, contain, if at all possible, eradicate money laundering has taken on a different sense of urgency.
The Core Guidance of Money Laundering Regulations 2007 describes the activity as “the process by which criminally obtained money or other assets (criminal property) are exchanged for clean money or assets with no obvious link to their criminal origins.” In simpler terms, it can be defined as “…the acts concerned with concealing, disguising or transferring out of the jurisdiction funds derived from drug trafficking, terrorism or criminal conduct.” A more precise definition can be found in Black’s Law Dictionary where it states that it is the “investment or other transfer of money flowing from racketeering, drug transactions, and other illegal sources into legitimate channels so that its original source cannot be traced.”...