This document outlines the key aspects of money laundering in 9 parts. It defines money laundering as the process of making illegally gained money appear legal. It discusses how money laundering revenue comes from various criminal activities and the reasons people launder money, such as to easily control large amounts of cash. The document also covers the negative impacts of money laundering on businesses and the economy, the features and steps of money laundering including digital money laundering, and international anti-money laundering activities.

1. MBA, UAP
Md Arman (21206018)

2. CONTENTS:
Part Ⅰ: Introduction Part Ⅱ : Money Laundering
Part Ⅲ : Features of money laundering Part Ⅳ : Reasons of Money Laundering
Part V: Negative Impact of Money
Laundering
Part VI : Steps of Money
Laundering
Part VII : Digital Money Laundering Part VIII : Anti-Money Laundering
Activities
Part IX : Conclusion

3. "Money Laundering" USA
Mafia's attempt to "launder"
illegal money
Outside of typical range of
economic data
“Two to five percent of
global GDP”

4. ML Revenue comes frommax
Drug
Dealing
Illegal
Arms
Sales
Smuggling
Prostitution Organized
Crime

5. ML Revenue comes frommax
Tax
Fraud
Extortion
Cyber
Fraud
Market
Manipulation

6. Money
Laundering

7. Money Laundering
It is a process of
converting illicit/illegal
funds
Into legal funds
The phrase "Money
Laundering" was
coined after the
Watergate Scandal in
1973. So, this not a
legal definition but a
colloquial term

8. Money Laundering
When an illegal
endeavor yields
significant
earnings
The person/s need/s to
figure out how to keep
the cash under
control without
drawing attention of
legal authority
Fraudsters conceal
the sources, change
the form, or relocate
the cash where they
are less likely to draw
suspicion

9. “Anyone who hides or uncovers
the source of assets” can be
defined as Money Launderer
Money Launderer

10. Money Laundering
So, Money Laundering is the
activities that directly defy the legal
code and other felonious
transformation of money from illegal
to make it legal funds.

11. The Source of Money
change
blend
misrepresent
redirect
Features of money laundering

12. Reasons of Money Laundering
$1 million in
20 dollar
bills=55kg
Unlawful
transactions
occur in
cash
Money from
organized
crime, $2.85
trillionG
$1 million
in 5 dollar
bills=220kg
ML helps
launderer
control the
cash easily

13. Negative Impact of ML
1. Destruction of business reputation 2. Questions on Ethics
3. Organizations become part of illegal activities 4. Affect Industry
On Business
1. Emerging financial centers with less regulations are vulnerable
2. The longer it stays, the organized the crime gets 3. FDI gets depressed
4. Imbalance’o Fin. Market puts the intl. economic stability @ risk 5. Fin. service @ risk
On Economy

14. How ML is done

18. 1. Breaking amounts in smaller quantities
2. Quick transfer of funds in legal economic system
3. Some are undercut with "structuring" and
"smurfing" to escape detection
4. Payment in multiple financial institutions, A/C
5. Acquiring banks or establishing new banks in
offshore nations ("company havens" or "bank havens")
1. Passive penetration of funds (Use frontmen)
2. Funds are turned into other resources
3. Forward displacement in life insurance
companies
4. Formation or Use of front firms
5. No dummy firm created, but simply
foundational documentation is falsified.

19. E-Money Launderingsteps
Electronic placement Electronic layering Electronic integrating

20. Anti-ML initiatives

21. Financial Action Task Force created in 1989
With 33 member nations and orgs.
Name & shame approach for non-cooperative members
No Non-Cooperative Nations and Jurisdictions since
2006
40 international standards suggestions