Money Laundering- The Biggest Fear For Finance Industry

By Author: Miami
Total Articles: 10
Comment this article

Money Laundering: Money laundering is the process of changing large amounts of money obtained from crimes like drug trafficking into origination from a legitimate source. In other words, it is the amount that is obtained through illegal activities but looks like it is obtained from legal sources. This is because otherwise this money can't be used. The purpose of money laundering operation is usually to hide either the source or the destination of money.

Money-laundering is a process through which criminals prove the slush funds to legal funds. In the law of Lexicon the term money laundering is being referred to as transfer of money from illegal sources into legitimate channels so that its original source cannot be traced. Apart from the traditional activities of drugs, kidnapping, procuring women, gambling, smuggling of alcohol, tobacco, medicines, armed robbery, counterfeiting and bogus invoicing, tax evasion and misappropriation of public funds, new markets are also flowering. At some places it is the practice of engaging financial transactions to hide the destination of illegally gained money and at some places the ...
... act is defined as taking any action with asset of any form which is either wholly or in part the proceeds of a crime that will disguise the fact that that property is the proceeds of a crime or obscure the beneficial ownership of said property.

Money laundering involves bankers, lawyers, car dealers, real estates builders, accountants and also others. In short everyone who allows its business to be used by someone to launder the proceeds of a crime. The biggest organizations that have been active in this process can be found in the hubs of capitalism: the United States (Cosa Nostra), Europe (the Sicilian Mafia) and Asia (the Chinese Lriads and Japanese Yakusas).

The process of Money laundering usually involves multiple transactions to disguise the source of financial assets. So that these assets are used without compromising the criminals who are seeking to use the funds. These transactions fall into three stages:

1.Placement which means money is being inserted into the financial system through transfers or unlawful proceeds into financial institutions.

2. Layering: Separates the money from their origin by moving them though a series of financial transactions. This makes harder to establish a connection between original and destination source.

3. Integration- Creating a legal explanation for the source of funds to acquire goods or assets.

It is a crime in many jurisdictions with varying definitions. Money laundering refers to the process of concealing financial transactions. Various money laundering techniques can be employed by individuals, groups, officials and corporations. The goal of a money laundering operation is usually to hide either the source or the destination of money.

Money Laundering is the biggest fear for finance industry. The entire industry in the world must understand that financial crime needs to be analyzed and fought proactively especially banking industry. They need to be one step ahead of money launderers in order to control the money laundering and financial crimes. One of the ways to control money laundering for the banks is they must know their customer well.

To prevent money laundering there was initiative taken by few countries and introduced a Money-laundering Bill. According to bill, a standing committee on finance, presented its report and after that government introduced the prevention of money laundering bill.

Abreu law firm attorney miami able to handle Money laundering cases in either state or federal court.