Prostitution, Drugs And Money Laundering

Prostitution, Drugs And Money Laundering
Prostitution, drugs and money laundering are all tied together in the underground world of the public crimes arena. In fact, acts are all influenced by
the political, economic, and social relations intertwined with organized crime resulting in violence, public health issues, and money laundering
schemes. Markets can be found online, on the streets, and through legitimate and illegitimate practices. The very nature of prostitution and drug crimes
are considered victimless crimes, resulting in collateral damage against the innocent, but each criminal act can harm the innocent in various degrees.
Drug addiction has affected all classes, races, and ethnicities for all time around the world. Drugs have not only been used for medical and religious
purposes, but they are also illegally manufactured, smuggled, and distributed globally on the criminal market due to technological advancements today.
One might say this harm is only affecting the individual user, but this is simply not true. Drugs use leads to addiction causing mental and physical
damage to those who use them. However, the power of addiction often leads to other heinous crimes and theft to support the habit. Antidrug legislation
and policies have been used to control the drug problem by implanting stiffer penalties for drug offenses even in small quantities. Nevertheless, the
manufacture and distribution of large quantities can carry a sentence of 10 years to life and $4 to $10 million dollar fine. Although
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Banking Law Project : Money Laundering
Banking Law Project
MONEY LAUNDERING
Submitted to :
Rohit Kumar Dharua
BA.LLB, Section "B" , 1383067
Contents
INTRODUCTION2
MONEY LAUNDERING IN INDIA2
METHODS OF MONEY LAUNDERING4
PUNISHMENT FOR MONEY LAUNDERING5
STEPS TO PREVENT MONEY LAUNDERING5
INTRODUCTION
Money laundering is the generic term used to describe the process by which criminals disguise the original ownership and control of the proceeds of
criminal conduct by making such proceeds appear to have derived from a legitimate source . In other words it is a practice which engages in specific
financial transactions, in order to conceal the identity, source or destination of money. It is the main operation of underground economy. The Interpol
General Secretariat Assembly in 1995 defined money laundering as: "Any act or attempted act to conceal or disguise the identity of illegally obtained
proceeds, so that they appear to have originated from legitimate sources".
BASIC CONCEPT: Money laundering is the process, by which, large amounts of illegally obtained money is given the facade of having a legitimate
source. Earlier the concept of money laundering was associated with organized crime alone. However in recent times, the ambit of money laundering
operations has dramatically increased.
The concept of money laundering originated in the U.S.A. It started with the attempt to disguise the ill–gotten wealth, obtained from trading in
alcoholic beverages. American mobster Meyer Lansky

Why Is Money Laundering Important In The UK?
When discussing the proceeds of crime, there is a tendency to associate it with the more distasteful members of society and overlook the white–collar
criminals that handle the dirty money, benefitting directly from it without tarnishing their reputation. Countries need to enforce an effective
Anti–Money Laundering regime to ensure that, no matter what walk of life you come from, crime truly doesn't pay. This dissertation explores the
approach taken by the UK to tackle money laundering taking place at the top end of our banks and financial institutes. There is consideration of whether
the network of bodies handling money laundering in the UK have coherent roles within the regime and coordinate their efforts efficiently. There are
then different ... Show more content on Helpwriting.net ...
We must make sure that organised crime cannot launder its funds through the banking system or the gambling sector... Our banks should never function
as laundromats for mafia money, or enable the funding of terrorists".
Many unsuspecting people would assume the UK's financial sector has no involvement with this level of crime, but the expression 'the City of London
being the laundry of choice' reflects how common and openly accepted it is that London is the money laundering capital of the world. When describing
the structure of the international drug trade in an interview with the Independent Newspaper, investigative journalist, Roberto Sarviano said "Mexico is
its heart and London is its head". This is undoubtedly due to London being one of the most, if not the most, sophisticated financial centres in the world.
The UK is becoming increasingly reliant on its financial services, demonstrated by the fact that in 2014 the UK's financial services industry
accounted for 8% of the gross value added to the economy. The success of the UK as a global financial centre is largely attributable to the reputation
of its cross–border bank lending and the financial institutions in

The Implementation Of A Risk Based Approach
The implementation of a risk–based approach ensures that competent authorities and financial institutions are able to establish all the necessary
measures for the prevention and mitigation of money laundering and terrorist financing handled with a manner commensurate with the risks identified,
allocating the available resources with the most effective ways. The risk–based approach refers to the recognition of existing money laundering risk, the
assessment of the identified risk and the mitigation of it through the development of appropriate measures and strategies.
Firstly, the identification of ML/TF risk is linked with the unrestricted access to accurate, timely and objective data and information concerning the
risks. It is significant ... Show more content on Helpwriting.net ...
At this stage, the information collected should be evaluated in order the likelihood of the risks to be assessed, as well as the impact of these risks on
the banks, the entire banking system and, on a larger scale, the national economy. As a matter of fact, the likelihood and the impact of the risks are
determinants of the classification of the risks as low, medium or high. Having regard to four elements –customer, country, product and interface – the
risk profile can be determined. More precisely, the risk concerning the customer is associated with the source of his incomer, his past financial activities
and transactions and the intended nature of the activities. Furthermore, the risk emanating from the country of origin of the income or the country of
the financial activities involves these jurisdictions, in which there are significant deficiencies in detection of money laundering and lack of cooperation
for the prevention of money laundering. Concerning the product, the risk involves the extent of attractiveness to money launders and openness
provided to financial criminals for concealing the illicit origin of their income. Regarding the element of interface, the risk illustrates the manner in
which the product is sold or acquired.
According to the former FSA, the completing of the risk–profile is required several parameters to be taken into consideration by banks. These elements
include:
" the transparency of

Money Laundering Essay
According to the U.S. Department of Justice, money laundering is the process by which one conceals the existence, illegal source, or illegal
application of income and then disguises that income to make it appear legitimate. Money laundering involves a three step process which includes
placement, layering and integration (Albrecht et al, 2009). Placement is the first step and it includes the launderer opening up an account at a bank
or some other type of financial business to make deposits with the illegal money. The placement step is often looked at as the most risk taking step
because the launderer does not know the reaction of the bank and how they are going to accept a large cash deposit. If the deposit is too large the
bank can... Show more content on Helpwriting.net ...
Money Laundering According to Hopton (2009), the Bank Secrecy Act of 1970 was created in order to prevent money laundering. The act was made to
try to discourage illegal acts such as money laundering from happening and to deter the criminals from even thinking about committing the crime.
Woods (1998) stated that money laundering was not a criminal offense at the time the Bank Secrecy Act was passed. The act provides information on
the movement of money through financial institutions in the United States and it monitors the movement of money into and out of the United States.
It requires banks and other financial businesses to help the government in trying to prevent and detect money laundering. The federal government law
enforcement agencies use the information gathered through the Bank Secrecy Act to detect criminal activities and regulatory violations. These
businesses are required to keep track of all of their cash transactions of ten thousand dollars and more and report them to the IRS within forty five days.
These transactions could include anything such as deposits, withdrawals, exchanges, payments, multiple transactions in one day and any cash deposits
over the weekend or holidays (Woods, 1998). They also have to identify individuals who are requesting these large transactions and keep any records
that relate to their transactions.

Essay on money laundering
Money laundering is the routing of illegal profits from bank to bank to disguise its existence. The illegal profits are usually made through activities
such as drug trafficking, prostitution rings, illegal arms sales, and various other things. Unfortunately money laundering is a serious crime that is still
prevalent in the United States and other countries. The Russian mafia, the Triad or Chinese mafia, and the Columbian drug cartel are just a few of the
groups that partake in money laundering. No one knows exactly how much money is laundered yearly but it is estimated to be about $100 billion in the
United States. The United States is not the only country affected by these numbers. The estimated amount of ... Show more content on Helpwriting.net
...
Most of the money laundered today is done by some sort of organized crime, whether it is a drug cartel, illegal arms sale, smuggling, prostitution
rings, the Mafia, or corporations. Organized crime has existed in the United States for many years. Some of the organized crime groups known for
money laundering are: the Russian Mafia, the Triad, other wise known as the Chinese Mafia and the Yakuza. All of these groups are known for a
variety of illegal activities that involve receiving substantially high profits. Some of these activities may include drug trafficking, illegal arms sale,
and various other things. Recently law enforcement has discovered that corporations have been helpers in laundering money. This discovery leads
back to the Black Market Peso Exchange. These corporations do not have a direct involvement with the laundering, but are a helping hand at times.
Many times corporations are the supplier of goods for the broker. The perks that go along with being the supplier entail getting an exchange rate
better than the market. An example of this is if a corporation has pesos that they need to exchange back into dollars, and the exchange rate is 1,000
pesos for 1 U.S. dollar, the broker may discount the rate to 880 pesos for 1 U. S. dollar.
The initial stage occurs when a criminal, or a group of criminals, involved in an illegal activity make a substantial sum of money. The money is then
put into the

Bank : Kiting And Money Laundering
Bank: Kiting & Money laundering Banks could become victim to kiting. Kiting can occur within a bank because criminals will open multiple
accounts within multiple organizations in order to commit kiting, and bank employees are not aware the criminal has already opened multiple
accounts. Banks also fall victim, as they do not detect kiting taking place until it is too late and the high dollar checks come back as insufficient
funds. Banks are able to prevent kiting from occurring by placing a hold on checks over a certain dollar amount. This will ensure the funds are legit
and valid. Banks are also able to watch for multiple check deposits and checks written with the same dollar amount. In addition, banks can require a
bank officer's approval on any drawings against uncollected funds, overdrafts, or wire transfers, they also should perform daily reporting of all drafts
against uncollected funds. Kiting can be deterred, however banks must ensure they have the proper internal controls in place to ensure they do not fall
victim to kiting.
Banks are susceptible to money laundering within the organization. Banks are an easy target for money laundering because criminals or drug cartel can
pay off bank employees or personnel in order to run their money through the bank. Criminals also have the ability to purchase a controlling interest in a
bank, especially those banks with weak controls. This allows the criminals to move money through the bank without being questioned.

The Mafia's Money Laundering
Money Laundering
The term "money laundering" is said to create from Mafia possession of Laundromats in the United States. Gangsters there were earning huge sums in
cash from extortion, prostitution, gambling and bootleg liquor. They needed to demonstrate a legitimate source for these monies.
'Money laundering is the process by which criminals try to conceal the true origion and ownership of the proceeds of their criminal activity, allowing
them to maintain control over the proceeds and, in the end, providing a legitimate cover for their sources of income'.
In the 1980's, money laundering was considered only as interest basically with drug trackling backgrund. It created trouble in western society, because
the profit genration was increasing from criminal activities. Therefore, there was a force from society to take action against drug dealers by introducing
legislation that would remove them of their illegal gains.
Government soon identified that criminal organizations, which made massive profits from drugs, could corrupt the system of state at all levels.
Money laundering is a worldwide trend, supported by international society which is a 24hrs a day business. If one closes, another opens for business.
As a 1993 UN Report noted: The essential features of laundering of profits of crime are its global nature, the flexibility and adapbility of its operations.
These make the crime in an organized manner. Moreover, a very important point which should not be ignored at any cost

Money Laundering In Latin America
Counterfeiting, Drug Trafficking, Extortion, Fake Pharmaceuticals, Human Trafficking and Weapon Smuggling are all furtive actions that are
inextricably linked to that of Money Laundering. When money is obtained from these illicit actions, individuals must find a way for the money to be
"cleaned" or "laundered" so as not to raise suspicion. Individuals usually turn to projects such as Real Estate, Investment in precious metals, creation of
fake companies and even Gambling to avoid authorities' suspicion. The paper starts off with the definition of money laundering which then briefly
examines possible reasons for its increase. This paper seeks to explore possible reasons as to why Money Laundering is increasing in Latin America
and why it is

Anti-Money Laundering Mantas Solutions
Getting To Know Mantas
The Mantas Corporation, based in Virginia, along with offices in New York, the United Kingdom, and Singapore, has created powerful business
intelligence solutions that help other companies determine risk, make informed decisions, improve relationships and grow their business. The people
of Mantas are financial service professionals who understand the different aspects of business from compliance regulations and data distribution. As an
overview, Mantas began as a business unit focusing on meeting the demands of an ever–changing global financial services industry.
"In the mid–1990s, the Mantas team began work as a business unit of SRA International, Inc. Focusing from the start on meeting the needs of the ...
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Mantas allows its customers to fully understand their business increasing their ability to decide between which risks and opportunities they are willing
to take. By making their product user friendly and the results easy to understand, Mantas has become one of the industry 's leaders for compliance
regulations and analytical data distribution.
The amount of information that Mantas can handle is superb. For just one independent client they are able to process over one hundred billion fields
of data on any given day. In addition to their user friendly benefits,
"Mantas Scenarios are already coded, tested, and ready to use, enabling customers to realize benefits much sooner than with other, more
time–consuming alternatives. There is no learning stage, or fuzzy–adaptive–black box scheme to run. We code it in right from the start because we
understand the business and the business user. Mantas gives financial institutions and communications service providers the ability to monitor and
analyze customer, performance and transaction information across the entire organization for a complete and accurate picture of behaviors of interest.
As a result, it 's now possible to detect suspect behavior early enough to mitigate risk, report and prioritize findings without manual intervention, comply
with changing regulations, increase revenue by improving

Sinaloa Cartel: The Role Of Money Laundering In The United...
Although the term money laundering is relatively new, the concept goes back to around 67 AD. It is thought that the pirates smuggled and hid gold
throughout the oceans. The pirates' targets were European commercial vessels and were accomplished with the help of the British, French, and Dutch
governments. This form of gold laundering went through the 16th and 18th centuries, until England offered pardons. These pardons allowed the pirates
to keep their earnings, if they return to England and leave their pirate–like lifestyles (IMF). Similarly, on the other side of the world, Chinese merchants
were too wealthy and needed to hide their profits. Commercial trading was prohibited, so this forced the bureaucrats to keep their funds safe through
threats... Show more content on Helpwriting.net ...
That is their criminal efforts, but the economic problem arises when the cartels must transfer the cash back to Mexico. The IRS requires that any
deposit made over $10,000 has a bank receipt that goes along with the transaction (ICE). When cartels are depositing very large amounts of money, they
must make inconspicuously, large amounts look believable. "Traffickers will send drug proceeds through various wire transfers to different accounts in
different names in different countries, all the while varying the amount of their deposits and withdrawals to make the paper–trail harder to follow"
(Woody). The SinaloaCartel is the largest narcotic moving and profiting drug cartel in Latin America. As time progresses, the cartel becomes more
creative in their efforts to conceal dirty money over borders. Early in 2014, here in Chicago, the Sinaloa Cartel was taking money and trading it for
gold bars or other expensive jewelry. Then, they were shipping it to Florida, where they were working with a business. The business could keep 1%
of the money they laundered into Mexico. The businesses were professionals who would make false documentation backing up the sales of gold to
Mexico

Money Laundering Organized Crime
There are many organized crimes happening in the world. And we should wonder how they earn money to commit those crimes. One of the biggest
money source for organized crime is money laundering. Money laundering is disguising the origin of the money and making it look like a wealth
traded legitimately. According to UNODC report in 2009, criminal proceeds amounted about USD 1.6 trillion dollar being laundered. To reduce
organized crimes, it is important to eliminate money laundering since it is their main source of money. DPRK, has been accused for money laundering
to pay for their weapons. Additionally, they have been involved in money counterfeiting, laundering, and the use of fake wealth in international
financial systems. Treasury officials ... Show more content on Helpwriting.net ...
This delegate suggests some solutions for this problem. Firs, she thinks that people around the world should be aware of the money laundering.
Actually, many people around the world are not knowledgeable about corruption happening in the world related to money. Nations should notice the
danger and severity of financing terrorism to prevent people from getting damaged. Secondly, since money laundering cannot be prohibited by a small
power, this delegate thinks that it is necessary to combine countries' investigative agencies. When many countries cooperate together, she certainly
believes that it is possible for nations to eliminate money laundering rate. The last solution this delegate suggests is that each country have to reinforce
the regulation of the money irregularity. Government should check if the great amount of money has been traded. If it has taken place, this delegate
thinks that nation should research about the route the money has come from. To do this, she thinks that government should take more care about
money that are being traded among people. This delegate believes that that when many nations work together to eliminate the money laundering, it will
lead to the decreased rate of organized crimes taking place all around the world. Also there will be a brighter future coming up for the

Red Flags ( Risks )
Red Flags (risks) implicit in the scenario
Given the outline above there are risks to be considered which are potentially suspicious or "red flags" which give rise to money laundering or terrorist
financing risks, specifically;
Funds transfer – large deposits from unconnected third parties in high risk jurisdictions and large cash deposits by the customer could indicate money
laundering
Activity inconsistent with customers business – Letter of credit for cement when the customer is a small trader (fruit and veg) – this could indicate
terrorist financing (in Dec 2014 multiple press articles indicating "cement for rebuilding Gaza diverted to terror tunnels" and also presents a trade
finance risk (In July 2013 the FCA issued a report on the state of the major banks control of AML risks relating to trade finance, one of the main
findings was that Letters of Credit were not reviewed sufficiently reviewed (https://www.fca.org.uk/news/tr13–03–banks–control–of–financial–crime
–risks–in–trade–finance))
Lending – request for loans – possibly obscuring movement of funds
Large cash deposits – seemingly large deposits would be strange give the nature of the business
The presence of such red flags does not necessarily indicate by itself criminal activity but certainly closer scrutiny is required to determine whether the
activity is suspicious or there doesn't appear to be reasonable business use. The primary focus should be on reporting suspicious activity, rather than

Money Laundering And Its Effects On The World
Arvon Lunsford
Professor Kuchta
ENGL 102
15 November 2016
Money Laundering
In todays world there are so many different ways to commit a crime. You might not even realize it, that it could be a family member or even a really
close friend committing these crimes. I am talking about a white collard crime called Money laundering. Have you ever wondered what Money
laundering really is? With this research paper, you will get a chance to finally learn what it really is all about. You will get an inside look into Money
laundering. From their we will learn about the types of people that commit this type of crime and why. Then we will look into how they ended up
getting caught. After that we will take a look into all the cases against the people and corporations that were caught red–handed laundering money. Now
that I have caught you're your attention, you are probably thinking to yourself; "What is Money laundering?" Money laundering is a term that "refers
to the activities and financial transactions that are undertaken specifically to hide the true source of the money" (IRS.GOV) that you have received.
This is usually happening when you are receiving your money illegally and trying to show that you are receiving the money from actual business type
situations. A great example would be a drug dealer receiving all of his money from selling drugs and then turning around and saying he is receiving the
money from a fake storefront or even from construction. When in reality they do not

Money Laundering
MONEY LAUNDERING IN THE BANKING SECTOR
TABLE OF CONTENS 1. | MONEY LAUNDERING– the concept An organized crime Why it is done??| 2. | Stages and Process Of Money
Laundering| 3. | Vulnerability of the Financial System to Money Laundering| 4. | Banking Sector: Medium, Regulator And Cause| 5. |Private Banking
And Money Laundering:| 6. | What Banks Should Do?| 7. | Indian Law For Prevention Of Money Laundering| 8. | Law Enforcement Authorities| 9. |
Tax Havens And Money Laundering | 10. | Case Studies| 11. | Conclusion| 12. | References... Show more content on Helpwriting.net ...
Another definition is "The conversion or transfer of property, knowing that such property is derived from serious crime, for the purpose of concealing
or disguising the illicit origin of the property or of assisting any person who is involved in committing such an offence or offences to evade the legal
consequences of his action, and the concealment or disguise of the true nature, source, location, disposition, movement, rights with respect to, or
ownership of property, knowing that such property is derived from serious crime". (Article 1 of the 1990 European Communities (EC) Convention on
Laundering, Search, Seizure and Confiscation of the Proceeds from Crime).
The UN defines it as"Money laundering is a process which disguises illegal profits without compromising the criminals who wish to benefit from the
proceeds. It is a dynamic three–stage process that requires: first, moving the funds from direct association with the crime; second, disguising the trail to
foil pursuit; and third, making the money available to the criminal once again with the occupational and geographic origins hidden from view". United
Nations Global Programme against Money Laundering.
MONEY LAUNDERING – AN ORGANIZED CRIME:
Money Laundering has a close nexus with organized crime. Money Launderers accumulate enormous profits through drug trafficking, international
frauds, arms dealing etc. Cash transactions are predominantly

The Internet : The Modernization Of Money Laundering
The Internet: The Modernization of Money Laundering in the 21st Century Until all illegal activity ceases worldwide, there will always be a need for
money laundering services. While there is no way of knowing when the first case of money laundering occurred, countries all over the world have been
trying to fight this issue for at least the last 40 years. As soon as a new technique comes out into the public, countries write laws that try to prohibit that
behavior. Unfortunately, there is no one–stop fix for this international dilemma because new creative ideas come to fruition every day. No other idea or
technology has influenced the illegal washing of money like the internet in the last 25 years. This essay will attempt to conclude the influence of the
internet by looking at three separate money–laundering activities such as banking institutions, money transfer systems, and online currency. Defining
Money Laundering Before attempting to demonstrate why the internet is so important to money laundering, it is important to understand the basic
structure of the process. Money laundering is a "complicated activity, in which the source and nature of dirty money are disguised in order to make the
money look lawful and then become usable, transferable, and negotiable." Although with each iteration of techniques in cleaning money becomes more
complex, each one has the same three steps of placement, layering, and integration. With any successful illegal operations, large

Money Laundering Act 2002
B.Prevention of Money Laundering Act, 2002 The Prevention of Money–Laundering Act, 2002 (PMLA) was enacted to safeguard against those acts of
persons which are aimed at making tainted money appear as untainted. To take a simple example, if a person earns money through, say, dealing in
narcotic drugs and thereafter takes some steps whereby it appears to have been earned through some legitimate business, such as running a laundry
shop (the classic example), it is money–laundering . Thus, the ingredients of the Act are clear: there has to be an offence, monies have to be earned
through such offence and then an act should be made delinking such earnings from the offence and linking it with another act that is not an offence .
Relevant Provisions

Homeland Security Chapter 11
Article 3 Chapter 11 U.S. Moves to Further Penalize North Korea Chapter 11 in the textbook Homeland Security by Larry K. Gaines and Victor E.
Kappeler, discussed in lengthy detail the way terrorist cells go about financing, as well as their financial needs. However, one of the most common
questions asked today; once the terrorist organizations obtain the needed funds to plot an attack how do they go about moving the money without
being detected? The answer given in chapter 11 in the textbook is through money laundering (Gaines & Kappeler, 2012, p. 315). Pursuing this further,
terrorist cells go about laundering their money through a verity of methods. To better elaborate, one well known way to launder money is through
priceless

Money Laundering In Canada
The Proceeds of Crime (Money Laundering) Act was amended in December, 2001 to become the Proceeds of Crime (Money Laundering) and Terrorist
Financing Act (PCMLTFA). They detect and deter money laundering in Canada. They also respond to threats by crimes. Under the law in Canada,
money laundering and Terrorist Finance Act is An Act to facilitate combating the laundering of proceeds ofcrime and combating the financing of
terrorist activities, to establish the Financial Transactions and Reports Analysis Centre of Canada and to amend and repeal certain Acts in consequence.
If found guilty of not reporting any suspicious transactions may result in criminal and/or administrative penalties. According to the Financial
Transactions and Report

What Is Money Laundering?
What is Money Laundering? Money laundering is a method by which the background and ownership of money is generated as a result of illegal
activity, can be concealed. In effect the money is "cleaned, laundered or disguised through honest means and as an outcome the earnings lose their
existing criminal identity and look as if it was generated from a legitimate source. This practice is usually completed a number of times. It is common
for this procedure to occur in respect of the earnings from drugs, human trafficking, prostitution, corruption, bootlegging, racketeering and illegal arms
smuggling. The process allows the money to be controlled, without the fear that the transactions will lead back to the initiator or originators of the...
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Charles "Lucky" Luciano was born Salvatore Lucania on November 24, 1897 in Lercara Friddi, Sicily to Antonio and Rosalia Lucania along with
four other siblings. Luciano 's father worked in a sulfur mine in Sicily. When Luciano was 10 years old the family immigrated to the United States.
They settled in New York City in the area of Manhattan on its Lower East Side, a common destination for Italian immigrants. At age 14, Luciano
withdrew from school and began a job distributing hats with a weekly earnings of $7.00. However, after engaging in a dice game and winning $244.00,
Luciano abandoned his job and went to making money out on the street. Within that year his parents would eventually send him to the Brooklyn Truant
School.
While a teenager, Luciano started his own gang and unlike other street gangs whose daily activities were petty crime, Luciano offered security to Jewish
youngsters from Italian and Irish gangs for the cost of ten cents weekly. It was throughout this phase Luciano encountered the Jewish Meyer Lansky
which would become his imminent business partner and close friend. It is not clear how Luciano had gotten the nickname "Lucky", but it may have
come from him enduring a severe whipping and throat slashing incident by three men in the 1920s. Later it was believed to be because Luciano
refused to work for another mob boss. From 1916 to 1936, Luciano was detained 25 times on charges stretching from assault to unlawful gambling to
corruption as well as

Nature and Causes of Global Money Laundering
NATURE AND CAUSES OF GLOBAL MONEY LAUNDERING
PRESENTED BY:
Kiran Aftab (Roll # 01) Afifa Naseer (Roll # 68) MBA–2004 4th Semester
INSTITUTE OF BUSINESS ADMINISTRATION
UNIVERSITY OF THE PUNJAB LAHORE
TABLE OF CONTENTS
Introduction 6
History 9
Money laundering and Globalization 13
Nature of Money laundering ... Show more content on Helpwriting.net ...
Money laundering is the processing of these criminal proceeds to disguise their illegal origin. This process is of critical importance, as it enables the
criminal to enjoy these profits without jeopardizing their source.
Illegal arms sales, smuggling, and the activities of organized crime, including for example drug trafficking and prostitution rings, can generate huge
sums. Embezzlement, insider trading, bribery and computer fraud schemes can also produce large profits and create the incentive to "legitimize" the
ill–gotten gains through money laundering.
When a criminal activity generates substantial profits, the individual or group involved must find a way to control the funds without attracting
attention to the underlying activity or the persons involved. Criminals do this by disguising the sources, changing the form, or moving the funds to a
place where they are less likely to attract attention.
As money laundering is a necessary consequence of almost all profit generating crime, it can occur practically anywhere in the world. Generally,
money launderers tend to seek out areas in which there is a low risk of detection due to weak or ineffective anti–money laundering programmes.
Because the objective of money laundering is to get the illegal funds back to the individual who generated them, launderers usually prefer to move
funds through areas with stable financial systems.

HISTORY
ACT OF MERCHANTS IN CHINA
It is very

Real Estate Vs Self-Launders
Dugato, Favarin, and Giommoni look at information why member of criminal enterprises would invest into land in the first place. Member
determines whether the property will be more lucrative or useful for them in the area. First, property will rise in value after the purchase. For
instance, new development in the area could either sell land or houses for a higher price from when they originally bought it. This sale allows them to
cover up "dirty money". Second, property is already in a valuable region not meaning that the property will increase in value but offer greater proceeds
from criminal earning can be laundered with a thought out purchase (2015, p.948). The mafia in Italy is more likely to invest in urban areas compared
to rural areas. ... Show more content on Helpwriting.net ...
However, this process can be messy at times. This strategy is crucial for early steps of an investigation. A few major problems come to play when
trying to "follow the money" One major problem with this strategy is that money laundering is international, which makes it harder to track money.
First, financial intelligence is unable to gain evidence from law enforcement records because law enforcement interest lie in drugs or violence of a
criminal enterprise rather than financial details. Second, some money laundering schemes can be a complex process of layering so that a specialist
should be attached to the investigation so they can use their expertise. Finally, money laundering is an international problem. Money can be moved in
many ways, for instance, wiring money, using foreign banks, and investing in companies overseas just to name a few (Soudijn, 2014, p.214). The
concept of "follow the money" can be a long and complex process when investigating criminal

FRAMEWORK OF ANTI-MONEY LAUNDERING AND COMBATING OF...
FRAMEWORK OF ANTI–MONEY LAUNDERING AND COMBATING OF FINANCIAL TERRORISM IN THE ECOWAS REGION
By
Oladeji Ifeoluwa TemiloluпЂЄ
1.0Introduction
Money laundering as a form of cross border crime involves the use of legal tender in a financial transaction in order to conceal the origin, source or
destination of such legal tender derived through illegal means. The sole aim of every money launderer is to misrepresent to any law enforcement
authority or agency that the source of the funds are clean. As such it would be a difficult task for any enforcement authority to trace the source of the
funds and by so doing the money launderers are able to escape prosecution or conviction.
The term money laundering has its origin grounded in the Mafia ... Show more content on Helpwriting.net ...
2.0 CONCEPTUAL CLASSIFICATION
The porosity of the borders of most ECOWAS countries has led to the mammoth rise in the rate of cross border crimes, ranging from drug trafficking,
human trafficking, tax evasion to money laundering. This rise has not only expanded, but has multiplied these crimes to a more sophisticated type with
a crippling effect on the local economy and international relations of these countries.
These increase can be linked to the ready ease with which humans and goods could travel between these ECOWAS countries, whilst the developments
in technology has further facilitated the transfer of the proceeds from such criminal activities in ways hitherto unknown, this led to the swift rate at
which money laundering amongst these countries developed5. Other economic and financial crimes, for example, drug trafficking and human
trafficking also grew in limps and bounds, thus contributing to the growth in the incidence of money laundering and financial terrorism.
By reason of the fact that the global agenda to curb financial crimes calls for cooperative approach among countries in addressing these challenges,
introducing a number of international legislations on money laundering and financial terrorism became a necessity. The treaties includes; the United
Nation's Convention against the Illicit Traffic in Narcotic Drugs and Psychotropic Substances 1988, the International Convention for the Suppression
of the Financing of Terrorism

The Dormant Accounts From Wwii
Dormant accounts Dormant accounts from WWII became an issue in the mid 1990's when World Jewish Congress (WJC) decided to go after
Swiss banks for funds they claimed should have been given back to the survivors or their descendants. According to the WJC, $1.24 billion was
paid out to funds set up by Swiss banks ("Report: Swiss Banks ' Holocaust Fund Paid out 1.24 Billion Dollars," 2013). So how do the Swiss banks
handle regular dormant accounts? From first sight it seems like it would be easy, unlike holocaust survivors and victims' descendants that have spread
out all over the world after the war. Private accounts are private, and if a customer dies without leaving beneficiary information or company goes out of
business accounts are... Show more content on Helpwriting.net ...
The toxic securities came to $38.7 billion CHF (Shotter, 2013). As the economy improved UBS was required to buy back a portion plus interest.
Secrecy, Tax Evasion, andMoney Laundering The degree to which tax evasion and money laundering have been investigated in recent years, the
validity of having such secrecy has been questioned again. In 2003 the European Union reached an agreement to phase out banking secrecy, but in
fears that the clients will withdraw funds and deposit them in Switzerland, "the three member nations that have secrecy laws, Belgium, Luxemburg,
and Austria, would be permitted to keep those laws so long as Switzerland does" (Meller & Langley, 2003). The EU countries, banks will be held to
withholding a 15% tax on the earnings of account holders. So what is money laundering? Our trip to HSBC, Nick Batterton, provided us with a
detailed overview and a case scenario to show just how easily one may launder money. The three core stages of money laundering are the placement,
layering, and integration. You must first enter your illegal funds into the financial system through deposit, usually through a legitimate looking
business. Then you layer or launder, where you make multiple complex transactions to displace it from the origin deposit. Once complete you re–enter
the funds into ligament purchases such as luxury purchases and financial investments. So why are the banks in

Money Laundering
Throughout history, America and other global economies have consistently battled for equality and fairness in their country. Many new legislations and
laws have been implemented and added throughout the years to adapt to the new technological advances each market has encountered. Even so, the
question of ethics has been raised weighing whether or not each new law meets the ethics in business and morality. One important obstacle that is still
at the forefront of new legislation and posed for ethical evaluation is money laundering. Money laundering has survived the years through questions of
morality and lawfulness by adapting to rigorous restraints and finding new ways to manifest itself in different segmentation forms of trade.... Show
more content on Helpwriting.net ...
His beliefs are opposite of the general population. His overall view is that money laundering is not a major crime and that we have imposed a form
of double jeopardy for those violating these particular crimes. He also believes that we should lessen the consequences because he believes they are
not linked to other crimes. Many illegal activities have been encouraged with money laundering. It is much easier on our government to find
perpetrators if money laundering was absolved. By money laundering being absolved, our government would pick up on traffickers easier because they
would have no way of accounting for their large and unexplainable income. With our government having specialty government services like the Internal
Revenue Service, drug traffickers would be detected faster because of unexplained purchases that are higher than their recorded yearly income. Once
that occurs the government would be able to isolate large expenditures that traffickers usually use their funds for. Some examples would be lavish
vehicles, extravagant personal residences and large investments. To combat money laundering, FAFT issued the 40 Recommendations in 1990 and
revised

How To Criminalize Money Laundering
Congress crafted a broad statute designed to criminalize the actions of anyone who knowingly participated in an illicit transaction, regardless of its
magnitude or dollar value. Although the current money laundering statute is broad and general, there is widespread agreement that it does not
criminalize the mere act of spending money generated by the illegal criminal activity. This helps hold the accountability for individuals engaged in
criminal activity. Spending money by making a purchase or entering into a transaction is not necessarily a crime, even if the party spending the illegally
gained money knows that the money came from illegal activities. Rather, in order to run afoul of the law, there must be direct or circumstantial evidence

Keeping Clean: How Islamic Banks Fight Money Laundering?
Keeping Clean: How Islamic Banks Fight Money Laundering?
By: Hany Abou–El–Fotouh
Money laundering is not a new trend. It is a process that takes illegal or "dirty" money generated from illegal activities and puts it through a cycle of
transactions, so that it comes out at the end as apparently legal or clean money. The process is driven by criminal activities and conceals the true
source, ownership, or use of funds.
No one can deny that money launderers may use Islamic banks as a place to clean their dirty money through the use of various financial instruments. In
fact it is important to ensure that Islamic banks are well protected from being unwittingly used by money launderers. Additionally, the public at large
should continue ... Show more content on Helpwriting.net ...
Accordingly, Islamic banks are responsible to prevent or to combat money laundering activities which are clearly not in line with the teachings of Islam.
Are Islamic Banks More Vulnerable To Money Laundering?
Conventional and Islamic banks and other financial institutions are vulnerable to money laundering. Money launderers may target them because of the
fast, safe services offered with the possibility of transferring enormous amounts of money electronically around the globe using their products and
services.
Sadly, Islamic banks and financial institutions are seen as the weak link in the Wes. The wrong perception is about inadequate anti–money laundering
(AML) and internal controls. Moreover, in Islamic institutions, the heavy reliance of the industry on cash transactions and on trust within the business
communities of Muslim countries have been key areas of concern for Western regulators and institutions.
The reality is in the majority of cases AML standards are the same in Islamic financial institutions as in their Western counterparts, However, Islamic
finance is a new industry, and with all new industries there is always a room for improvement.
The 5 Common Myths about Islamic Banks

Myth 1: Many Muslims send their Zakat (alms giving) through Islamic banks. No assurance they have funded a legitimate charity vice a terrorist group.
Reality: Islamic banks oversee payment of Zakat to worthy charities and apply same

Franklin Jurado's Money Laundering
Franklin Jurado is an infamous money launderer who's case have been studied by many, including law and drug enforcement officials, financial
investigators and other experts globally. Franklin Jurado, a Harvard educated economist from Colombia was responsible for laundering money for a
drug lord named JosГ© Santacruz–LondoГ±o. According to Rashbaum (1996) from the NYDailyNews, it was found that Jurado "cleaned" $36
million using his knowledge he acquired from a Master's Degree in Economics from the University of Columbia and from Harvard's Kennedy School
as a researcher. According to Layton (2016), Jurado had conducted his money laundering activities in association with LondoГ±o, Castro–Meza and
Rodriguez de Castro since the late 1980s to the early... Show more content on Helpwriting.net ...
The loophole found in this case is that during the placement stage, where Jurado was able to transfer 36 million dollars of drug money, through several
bank accounts and numerous investment companies by LondoГ±o. Jurado was clever and careful that he did not deposit amount of money more than
ten thousand dollars into hundreds of bank accounts under different names including made up names (UN General Assembly, 1998). The banks and
authorities were not alerted of his illegal actions because the deposits were less than ten thousand dollars. Therefore, this is where the financial
institutions and markets were ambiguous of Jurado's

Does Anti-Money Laundering Work?
How Does Anti–Money Laundering Work?
(anti–money laundering act, anti–money laundering process)
kw: anti–money laundering
Meta: With the rise of globalization, money laundering is even easier in the modern world. Find out how anti–money laundering programs work to
combat this crime.
Money laundering is the process that criminals use to make "dirty" money seem clean. They may set up a business to funnel money through like a car
wash or a strip club. In the increasingly globalized world, some criminals also use shell companies, international wire transfers, multiple bank accounts
and offshore accounts to make their illicit earnings appear legitimate. Anti–money laundering task forces are set up to combat this problem. Since
money laundering ... Show more content on Helpwriting.net ...
If many money launders are investing in front businesses, it makes it seem like there is an increased demand for car washes. Often, money launderers
invest in financial products, which also distorts the marketplace.
How Can Organizations Fight Money Laundering
There are international organizations set up to combat money laundering. Groups like the FATF have recommendations in place that financial
institutions and governments can use to guide their anti–money laundering activities. In addition, many nations also have specific laws to address
money laundering. In the United States, laws like the Bank Secrecy Act, the United States Patriot Act and the Money–Laundering Suppression Act
were all set up to combat this crime.
Can AML Stop Terrorists?
Anti–money laundering programs can help to combat terrorism. Terrorists may receive money from legal or illicit sources. Before they buy an
airline ticket or spend money on terrorist activities, the money has to be funneled into accounts that look legitimate. If Osama Bin Laden's bank

account had been used to buy an airline ticket or purchase excessive amounts of fertilizer, it would have been flagged. If an account owned by Sallie
Jones buys fertilizer for ABC Greenhouse, it appears less

The Crime Of Money Laundering
1.0 Background of study
Over a long period of time, corruption has been the focal point of every government, media and academics globally. Through money laundering,
proceeds of crime can be disguised. Proceeds of crime can simply be put as money earned from profit–oriented crime. The methods used are many and
highly complicated. Corruption is one of the organised crime which is said to be primarily associated with the laundering of proceeds through money
laundering. Technological tools accord further chances for individuals to employ money laundering as a process of 'cleaning up' dirty money and
obscure the trail leading back to the underlying crime.
The crime of money laundering has been illustrated by many as the means of support for many crimes and is a main threat to the economic and
social security of societies. These activities have become a global problem in the second half of the 20th century similar to the fiery increase of drug
trade. The term has been extensively acknowledged and popularly being employed globally.
Often, as it is known that the origins of criminal proceeds were from drug trafficking, many law enforcers have now expanded their application to
offences such as human trafficking, cybercrime, illegal arms sales and smuggling. Many countries such as Malaysia, United Kingdom, Australia,
United States of America and Switzerland have given due consideration over prevention of money laundering, especially in relation to corruption.
In order to 'clean' the

Who Is Winning the War between the United States Law...
Has one ever wondered how a criminal can enjoy his profit without being exposed? If a criminal wants to enjoy his money successfully, he knows he
has to hide the true proceeding of his wealth. Since there are criminals doing misdeeds for a financial motive, there has been ways to disguise the real
origins of the profits. It was not until the 20 century when a formal term was imposed to this act. Even though the famous Al Capone was incarcerated
because of tax evasion (actually considered as money laundering charges, too), he needed to make his money seems as legal money so the police
won't have any reason to suspect him. However, the situation for money launderers is not the same as Al Capone's. If Al Capone was alive, he would
need a ... Show more content on Helpwriting.net ...
There is not an exact version of where the term money laundering comes from, but there is a theory that affirms the term was first used and recognized
internationally in the 1970's, after the Watergate scandal, the scandal that led to the resignation of the president Nixon (Dr. Gholanhossein).
In order to successfully launder money three processes are needed: placement, layering, and integration. In the first state, placement, the illegal
proceeding are disengaged from direct association with the crime or criminal. In the second stage, layering, the money is used in some legal financial
transaction in order to "camouflage" the cash. In the third stage, integration, the apparently legal money is available to the money launder (Kelly,
Maghan and Joseph). For better understanding, the fig 1 gives a real life example on how money laundering is done.
Fig. 1 "A Typical Money Laundering Scheme", a scheme by Paul Renner, What is Money Laundering? The Three Stages in Money Laundering...http:/
/paulrenner.com/C6–Intelligence/paul–renner–c6–kycmap–what–is–money–laundering.html
To complete every stage, money launderers use different techniques. To complete the first stage, placement, money launderers could use some
techniques like bulk cash smuggling, financial institution complicity, and blending of funds. The first technique cash smuggling is one of the oldest and

Money Laundering Essay
"Money laundering", is a term that is often used in association with illegal activities, especially in terms of terrorist actions. Many news reports in
televisions and newspapers have used the term money laundering but still, the general public do not have enough knowledge of what money
laundering is and the corresponding effects upon society. In line with this, there is also a need to further study the processes that are involved in
money laundering in order to properly address the aforementioned illegal action. Being the case, there is a need to define the term money laundering
and its relevance to important social issues. Moreover, due attention should also be given in the ways or means by which money laundering can be
efficiently... Show more content on Helpwriting.net ...
In the modern definition, money laundering "occurs every time any transaction takes place or relationship is formed which involves any form of
property or benefit, whether it is tangible or intangible, which is derived from criminal activity" (Hopton, p.2). In relation to this, it is also important to
point out that criminal proceeds do not have to be moved in order to launder them (Hopton, 2009). The modern definition of money laundering
highlights important points that describe money laundering. Contrary to the common belief that laundering only involves illegal money, there are also
cases wherein the money is legal but the failure of an individual to properly declare it as income on a tax return is also recognized as laundering.
Furthermore, the traditional view of money laundering involves the purpose that criminals result to laundering in order to identification, punishment,
and confiscation of their ill–gotten wealth. The traditional perspective is not incorrect but it is also essential to highlight that the primary aim of
criminals is not the conversion of property but rather the need to hide the fact that they actually own the property. The purpose of the criminals is to
remove the link between them and the property so that it cannot be related to the criminal offence that they wish to avoid. As a result, money
laundering is more

Anti-Money Laundering And Counter-Terrorism Financing
We all understand that anti–money laundering and counter–terrorism financing matters. This course explains how money laundering and terrorism
financing work, then provide the essentials for lawyers to do two important things.
First, to gain an understanding on which parts of the legislation may apply directly to them, and to provide tips to manage a legal practice for
compliance. This may include taking a risk–based approach towards anti–money laundering and counter–terrorism financing, initial client identification
and ongoing client due diligence, and suspicious matter reporting. Non–compliance brings about the risk of criminal proceedings, civil proceedings,
and disciplinary action (such as by professional bodies).
Second, to assist ... Show more content on Helpwriting.net ...
In other words, terrorism is often funded by "clean" money.
How does money laundering work in theory?
There are normally three steps in the ML process:
1.Placement – This is where the money originated from an illegal source is introduced into the financial system. This may be by way of depositing it
into a bank account or by converting it into diamonds, gold or other assets that can then be sold.
2.Layering – This is where the money from an illegal source is dispersed and disguised through a series of transactions or moved several times from its
origin in order to hide any audit trail. This may involve the use of multiple banks and accounts in difference names, then transact through
intermediaries, corporations and trusts.
3.Integration – This is where, after distancing the money from any criminal association, that money is integrated back into the economy. This may be
by investment in property developments or similar activities. At this stage, the illegal money has achieved the appearance of legitimacy.
Application to

Money Laundering To Transnational Organized Crime: A Case...
Money laundering to transnational organized crime operations because if their cash was not able to merge with legal business then the offenders
would easily be discovered and their income would not be legitimate (Albanese, 2011). This process allows criminal proceeds to be disguises from
their original origin(Albanese,2011). Transnational organizedcrime at times can go unnoticed and even unsolved because money laundering is not just a
trade but an irreplaceable mechanism of every other illicit trade and when these activities experience a surge, it pushes more into the laundering
cycle(Naim,2005).
In previous readings, it was noted that criminal enterprises are like any other legitimate business, which is to survive and make a profit(Albanese,2011).
... Show more content on Helpwriting.net ...
First, traffickers can sell their products to multiple people in multiple countries. If the criminal organization wants their "dirty money" to be made
legitimate they must place it in a bank. Next, is the layering process, in which the trafficker could send the income made through multiple wire transfers
by offshoring. Finally, the laundered money enters financial institutions and the trafficker can use the money to make a legal transaction on for
instance a house or an expensive car or if run by a terrorist group, the money can be used to fund their agenda. Albanese stated, profits associated with
drug trafficking can affect the legitimate banking system through untaxed profits and illicitly funded investments (2011).
Just like drug trafficking, human trafficking can be linked to money laundering as well. However, unlike drug trafficking, human trafficking is a
lucrative enterprise but both go through the same process. The money earned and collected by traffickers is made into legitimate money and then used
to invest in businesses, which can be later used as front companies. The moving of money can make difficult to combat these transnational crime

Case Summary: Petrobras Corruption Scandal
SUMMARY – Petrobras corruption scandal
Petrobras is an oil based company located in Brazil. The case encompasses about the bribery scam which involved Petrobras the giant oil based
company. On April 2014 Petrobras had to adjust their financial statement and when the statement was released the company faced heavy losses because
of corruption of an estimated losses of 6.2billion$. Investors were now losing hopes on Petrobras and this was a bad news for Petrobras once
considered one of the top listed oil company because of its huge offshore reserves , Petrobras is reeling from allegations that former executives and
contractors conspired with politicians to extract kickbacks and bribes from the company. Petrobras tried to keep the scam allegation ... Show more
content on Helpwriting.net ...
While money in HSBC accounts does not show any wrongdoing, the bank has continuously fined for not reporting suspicious transactions, and in 2012
they paid a $1.9 billion settlement for facilitating money laundering.
IMMEDIATE CONSEQUENCES
1. Petrobras scam was a monster it destabilized the country political system because all the political leaders were involved into the scam and they were
bribed with 2–3% scam bribe money.
2. Helped the tilt economy into recession and left 1000's of people unemployed because it was one of the leading oil companies as it had huge oil
shore reserve and once the company was caught in the scam it tilted the whole economy and faced recession 3. Petrobras told investors during the
release of its 2014 financial statement that it estimated losses directly related to vast corruption scandal at the company at R$6.2bn.brazil government
has deep deficit federal help is not on the way. But later on when the final financial statement was released they faced a loss of 44.6billion because of
overcoats and huge expenses.so now the investors started losing hopes in the

Insurance Entities Assigned to Money Laundering
1.0Introduction
Today barriers are removed so that businesses around the global village work hand in hand toward expanding their horizon both at home and abroad
and the use of corporate vehicle as a means of this expansion is nothing new. Mauritius joined the queue of globalization so as to boost its economy
and be a successful financial centre. Nevertheless, the forces of globalization have created new opportunities that criminals have been quick to seize,
with the result that the scale of global criminal activity has sky rocket to staggering proportions. For instance, the removal of barriers enables
criminals to hide their illegal proceeds in other countries. In order to be successful in their motive and avoid suspicions the criminals disguise the
sources, change the form, or move the funds to a place where they are less attractive and make them appear legitimate1. And this is how money
laundering takes birth. So, the process of taking the proceeds of criminal activities and making them appear legal is known as money laundering.
Over the years, Financial Services has emerged as one of the most important contributors to the Mauritian economy with a GDP share of 13%. The
sector has seen a sustained growth of about 7.8% per annum over the last few years. The sector comprises of major local and international players in
banking, insurance, capital markets, fund administration and management, international legal services and investment advisory amongst others2.
To be a

Criminalised Money Laundering In Australia
Criminalisation is a central tenet of any credible anti–money laundering (AML) regime. The principal offences related to money laundering in Australia
are contained in division 400 of the Criminal Code Act 1995(Cth) (the Criminal Code), which applies to both 'proceeds' and 'instruments' of crime.
Recognising the wide array of channels used to launder funds, the provision is framed in broad terms and has been relied on to prosecute individuals in
a variety of circumstances. This versatility has been acknowledged by the courts with the NSWCA in Milne v R asserting that 'the money laundering
offences in section 400 constitute a 21st century response to antisocial and criminal conduct commonly with international elements'. Through the
remainder of this presentation I will outline the evolution and background of these offences, their elements, application, and... Show more content on
Helpwriting.net ...
Section 81 criminalised money laundering which was defined in s 81(3) as engaging 'directly or indirectly, in transactions involving the proceeds of
crime; or receiving, possessing, concealing, disposing of or bringing into Australia any money, or property, that is proceeds of crime; and the
person knows, or ought reasonably to know, that the money or other property is derived or realised from some form of unlawful activity'. The
maximum penalty associated with this offence was a $200 000 fine or up to 20 years imprisonment. In contrast, section 82 created a lesser offence
of possessing the proceeds of crime, making it unlawful for a person to 'receive, possesses, conceal, disposes of or brings into Australia any money, or
other property, that may reasonably be suspected of being proceeds of crime'. The latter offence did not require any actual or constructive knowledge
of the origins of the tainted money or property and was thus associated with a lesser maximum penalty (on

Bank : Kiting And Money Laundering
Bank: Kiting & Money laundering Banks could become victim to kiting. Kiting can occur within a bank because criminals will open multiple
accounts within multiple organizations in order to commit kiting. Banks also fall victim, as they do not detect kiting taking place until it is too late
and the high dollar checks come back as nonsufficient funds. Banks are able to prevent kiting from occurring by placing a hold on checks over a
certain dollar amount. This will ensure the funds are legit and valid. Banks are also able to watch for multiple check deposits and checks written with
the same dollar amount. In addition, banks can require a bank officer's approval on any drawings against uncollected funds, overdrafts, or wire transfers,
they also should perform daily reporting of all drafts against uncollected funds. Kiting can be detoured, however banks must ensure they have the
proper internal controls in place to ensure they do not fall victim to kiting.
Banks are susceptible to money laundering within the organization. Banks are an easy target for money laundering because criminals or drug cartel can
pay off bank employees or personnel in order to run their money through the bank. Criminals also have the ability to purchase a controlling interest in a
bank, especially those banks with weak controls. This allows the criminals to move money through the bank without being questioned. In addition,
money laundering is likely to occur within a bank if criminals submit

Scott Rothstein
December 12 Scott Rothstein 2013 In July of 2010, Scott Rothstein was sentenced to 50 years in prison for running a US$1.2 billion Ponzi scheme
from his Florida law firm. DH Gatsby EXECUTIVE SUMMARY: Money Laundering & Scott Rothstein In July of 2010, Scott Rothstein was
sentenced to 50 years in prison for running a US$1.2 billion Ponzi scheme from his Florida law firm. Rothstein had two types of schemes. He
persuaded clients/investors to purchase hundreds of millions of dollars of structured settlements at a discounted price so that he could generate
immediate revenue from false settlements. Through the use of his law firm he fabricated court orders, forging the signatures of federal court judges,
that showed that... Show more content on Helpwriting.net ...
The paper trail would give warranted reasons for suspicion. The con revolved around the law firm settling numerous lawsuits and that the plaintiffs
wanted to expedite the receiving of their funds. Rothstein would sell their settlements at a lump–sum discount so they could receive their funds up
front to another individual/firm. In return, Rothstein promised investors substantial returns on the full value of the fraudulent settlement. Alongside a
financial review, I would inquire into Rothstein 's personal communication with staff and external colleagues. Obtaining computer, email and telephone
information would give me the greatest access to his communication. I would also contact all of his registered clients and confirm their information
with the information Rothstein has provided. Three Step Money Laundering Process Placement Phase: Illegal puts money in. Creates fake settlements
to interest purchasers out the to buy out the settlements at a discounted rate. Layering Phase: Move money around. Once he created the settlement, he
would receive cash payments for them at a discounted rate. In another ploy, in order for Rothstein to recover the money, his clients had to post bonds
worth millions of dollars with his firm. Integration: Rothstein would move the funds in several ways so that it would offer the illusion of being
legitimate sources of income. In several cases, he

Prostitution, Drugs And Money Laundering

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