This document discusses money laundering, including how it has become a global threat due to factors like globalization and technology. It describes the processes involved in money laundering as placement, layering, and integration. International responses to money laundering are also summarized, such as the Vienna and Strasbourg conventions, as well as the Financial Action Task Force. Finally, the document argues that money laundering proceeds should be used to benefit society through education, poverty alleviation, and other means in the interests of social justice.

1. Money Laundering
Presented By Absar Aftab Absar

2. Approach
What is Money
Laundering?
How it has
become a
Global menace?
Connection of
Social Justice
with money
laundering.

3. What is Money Laundering
Criminal Activity
Drugs/Arms
trafficking,
terrorism,
extortion
Illegally obtained
money
Money appears to
originate from
legitimate source
Conversion

4. Concept of Money Laundering
Money laundering generally refers to ‘washing’ of the proceeds or profits generated from:
Drug trafficking
Arms, antique, gold smuggling
Prostitution rings
Financial frauds
Corruption, or
Illegal sale of wild life products and other specified predicate offences

5. Processes involved in Money Laundering
PLACEMENT
LAYERING
INTEGRATION

6. Placement
Immersion or Soaking
The physical disposal of bulk cash
proceeds derived from illegal
activity

8. Layering
“Soaping / Scrubbing”
The separation of illicit proceeds from their source
by creating complex layers of financial transactions
These disguise the audit trail & provide anonymity

9. Integration
“Repatriation / Spin Dry”
Re-injecting laundered proceeds into economy so that
they re-enter financial system as normal business
funds
Provides an apparently legitimate explanation to
criminally derived wealth

11. Why money laundering has become a global threat
Globalization of the markets.
Growth in the International trade.
Surge in the internationalization of organized crime.
Quick transfer through financial wires and computer.

12. International Response
Vienna Convention 1988
•Demanded signatories to enact domestic laws criminalizing
laundering of money derived from drug trafficking.
•Unfortunately it was not implemented globally.
Strasbourg Convention of 1990
•Council of Europe adopted it and by 1999 27 of 41 members
ratified.
•Demanded the same from the signatories except to
criminalize laundering of money derived from any serious
crime.

13. Cont.…
Financial Action Task Force
Recommendations (FATF)
•Established by Group of seven industrialized
countries (G-7) in 1989.
•Issued recommendations in 1990 called forty
recommendations to combat money laundering.
•Updated in 1996 and encouraged full
implementation of Vienna and Strasbourg
convention.
•It prepares annual Money Laundering report.

14. Social Justice and Money Laundering
Laws as mentioned above not effective enough
to tackle the menace off Money Laundering.
•We should have some laws by virtue of which the
proceeds of Money Laundering can be effectively used for
the benefit of the society-
•The money generated through money laundering can be
used to impart education among the deprived ones.
•Can be used for the eradication of poverty by providing
dole to the needy ones.
•Can be used to pay Country’s debt.
•Many other purposes for the society at large.

15. Conclusion
Money Laundering is growing at a at an alarming rate.
The proper implementation of the Vienna as well as
Strasbourg Convention should be there.
The proceeds from the money laundering should be
consumed for the benefit of the society to meet the
ends of Social Justice.