This document summarizes an article about money laundering. It defines money laundering as disguising illegally obtained money to make it appear legitimate. It discusses how money laundering has negative impacts on economies by diverting resources to less productive areas, weakening financial institutions, and facilitating crime and corruption. It also explains how money laundering harms countries' external sectors by distorting trade and capital flows. The document concludes that money laundering is a global problem requiring international cooperation to control.
What is money Laundering? Prevention of money laundering act in india brief details
Examples of money laundering
How bad is money laundering
How can get money from Hawala?
What is punishment for Hawala in India
Threads Of money Laundering. I am Introducing a very big Issue, a big problem of our Country. I have written many ways to be out of the situation. So guys If you have chosen this topic be careful and Hit like and Download my PPT.
What is money Laundering? Prevention of money laundering act in india brief details
Examples of money laundering
How bad is money laundering
How can get money from Hawala?
What is punishment for Hawala in India
Threads Of money Laundering. I am Introducing a very big Issue, a big problem of our Country. I have written many ways to be out of the situation. So guys If you have chosen this topic be careful and Hit like and Download my PPT.
Interesting articles talking about money laundering activities and how the AML law shares an inverse relationship with the money laundering activity. This questions the overall cost/benefit activity of the AML regulation.
Anti-money Laundering:-
The process of disguising the proceeds of crime in an effort to conceal their illicit origins and legitimize their future use. Its main objective is to conceal true ownership and origin of the proceeds, a desire to maintain control, a need to change the form of the proceeds.Techniques used can be simple, diverse, complex, but secret.
Money Laundering and Its Fall-out - REGULATION OF MONEY LAUNDERING: INDIA - ...Resurgent India
With growing financial strength, India is becoming more vulnerable to money laundering activities, despite its strict foreign exchange laws, which make it difficult for criminals to launder money.
This presented is aimed at AML/CTF practitioners who would need quick reminders of the basics of AML. Tools are not very useful if the underlying basics are unknown.
Money laundering is the process of concealing the origin of money obtained from illegitimate sources by passing it through complex sequence of financial transactions and making it appear to be originated from legal activity.
Illegal arm sales, terrorism funding, smuggling, drug trafficking, insider trading, fraud schemes, bribery etc. are some examples of illegal activities prohibited by law.
In simpler terms, money laundering means cleaning of dirty money.
Process of Money Laundering
Placement – Placing illegal cash proceeds with banks and other financial institutions onshore and offshore in smaller denominations.
Layering – Creating complex layers of financial transactions to make it difficult to trace the origin of money. The transactions might be channelled through purchase & sales of financial securities.
Integration – Integrating the money into legal system by investing into business, real estates and luxury assets.
Methods of Money Laundering
Structuring / Smurfing – It is a method of placement where the illegal money collected is broken into smaller deposits to place at different banks. This is done to avoid any suspicion of origin of money.
Shell Companies – This involves creation of fake companies that are registered and exist in papers but hold neither physical location nor operational activities are done.
Bulk Cash Smuggling – This involves smuggling cash to foreign countries to deposit illegal money in offshore bank which hold greater secrecy; generally countries considered as tax haven.
Round Tripping – Shipping back the money deposited in offshore financial institutions as foreign direct investment.
Act -
Financial Action Task Force – Formed in 1989 by G7 countries to develop and ensure an international response to combat money laundering. The objectives of the FATF were to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
PMLA (Prevention of Money Laundering Act) 2002 – The act passed to stop money laundering and punish those involved directly or indirectly in illegal activity. As per this act whoever commits money laundering shall be punishable with imprisonment of about 3 to 10 years and shall also be liable to pay fine.
Thank you for watching
Subscribe to DevTech Finance
Governments across the globe have been taking measures to increase the scrutiny of AML/CFT processes and controls, to fight Financial crimes. Individuals and firms are required to comply with minimum standards; failure to keep up with the changing requirements can lead to penalties and legal consequences.
Presentation given for Crowe Horwath Auditor's training session on 26/03/2016.
AML regulations are applicable to professional service providers also. See the presentation for more information
money laundering and corruption
,
what is money laundering
,
suspicious transaction means such transaction:
,
what are some of the challenges
,
why and how to combat money laundering
,
money laundering
,
money laundering process
,
mlpa-2012
,
incentives to launder
International Journal of Humanities and Social Science Invention (IJHSSI) is an international journal intended for professionals and researchers in all fields of Humanities and Social Science. IJHSSI publishes research articles and reviews within the whole field Humanities and Social Science, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
Interesting articles talking about money laundering activities and how the AML law shares an inverse relationship with the money laundering activity. This questions the overall cost/benefit activity of the AML regulation.
Anti-money Laundering:-
The process of disguising the proceeds of crime in an effort to conceal their illicit origins and legitimize their future use. Its main objective is to conceal true ownership and origin of the proceeds, a desire to maintain control, a need to change the form of the proceeds.Techniques used can be simple, diverse, complex, but secret.
Money Laundering and Its Fall-out - REGULATION OF MONEY LAUNDERING: INDIA - ...Resurgent India
With growing financial strength, India is becoming more vulnerable to money laundering activities, despite its strict foreign exchange laws, which make it difficult for criminals to launder money.
This presented is aimed at AML/CTF practitioners who would need quick reminders of the basics of AML. Tools are not very useful if the underlying basics are unknown.
Money laundering is the process of concealing the origin of money obtained from illegitimate sources by passing it through complex sequence of financial transactions and making it appear to be originated from legal activity.
Illegal arm sales, terrorism funding, smuggling, drug trafficking, insider trading, fraud schemes, bribery etc. are some examples of illegal activities prohibited by law.
In simpler terms, money laundering means cleaning of dirty money.
Process of Money Laundering
Placement – Placing illegal cash proceeds with banks and other financial institutions onshore and offshore in smaller denominations.
Layering – Creating complex layers of financial transactions to make it difficult to trace the origin of money. The transactions might be channelled through purchase & sales of financial securities.
Integration – Integrating the money into legal system by investing into business, real estates and luxury assets.
Methods of Money Laundering
Structuring / Smurfing – It is a method of placement where the illegal money collected is broken into smaller deposits to place at different banks. This is done to avoid any suspicion of origin of money.
Shell Companies – This involves creation of fake companies that are registered and exist in papers but hold neither physical location nor operational activities are done.
Bulk Cash Smuggling – This involves smuggling cash to foreign countries to deposit illegal money in offshore bank which hold greater secrecy; generally countries considered as tax haven.
Round Tripping – Shipping back the money deposited in offshore financial institutions as foreign direct investment.
Act -
Financial Action Task Force – Formed in 1989 by G7 countries to develop and ensure an international response to combat money laundering. The objectives of the FATF were to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
PMLA (Prevention of Money Laundering Act) 2002 – The act passed to stop money laundering and punish those involved directly or indirectly in illegal activity. As per this act whoever commits money laundering shall be punishable with imprisonment of about 3 to 10 years and shall also be liable to pay fine.
Thank you for watching
Subscribe to DevTech Finance
Governments across the globe have been taking measures to increase the scrutiny of AML/CFT processes and controls, to fight Financial crimes. Individuals and firms are required to comply with minimum standards; failure to keep up with the changing requirements can lead to penalties and legal consequences.
Presentation given for Crowe Horwath Auditor's training session on 26/03/2016.
AML regulations are applicable to professional service providers also. See the presentation for more information
money laundering and corruption
,
what is money laundering
,
suspicious transaction means such transaction:
,
what are some of the challenges
,
why and how to combat money laundering
,
money laundering
,
money laundering process
,
mlpa-2012
,
incentives to launder
International Journal of Humanities and Social Science Invention (IJHSSI) is an international journal intended for professionals and researchers in all fields of Humanities and Social Science. IJHSSI publishes research articles and reviews within the whole field Humanities and Social Science, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
THE LEGAL AND INSTITUTIONAL FRAMEWORKS FOR COMBATTING MONEY LAUNDERING IN CAM...AkashSharma618775
Money laundering usually involves a series of multiple transactions used to mask the source of financial
assets, so that these assets can be used without compromising criminals seeking to their use. Money laundering can
happen through various intermediaries; bank transfers, both by wire and check, are the most common channels
for illicit money transfers. Money Laundering has several devastating effects; it damages financial sector
institutions that are critical for economic growth, promoting crime and corruption that slow economic growth,
reducing efficiency in the real sector of the economy. Money laundering is a problem not only in the world’s major
financial markets and sea centers but also in emerging markets. Cameroon has criminalized money-laundering in
line with the United Nations Convention against Corruption which was signed on 10th October, 2003, and ratified
by the President of the Republic on 6th February, 2006. Cameroon follows an all-crimes approach to moneylaundering whereby all offences under the laws and regulations of Cameroon constitute predicate offences. In
order to effectively combat money laundering, institutions have equally being put in place to combat it.
BEHIND CLOSED DOORS: THE SECRET WORLD OF MONEY LAUNDERINGMd Arman
Money laundering is a global issue that significantly threatens the
integrity of financial systems and economies worldwide. This paper
presents a theoretical description of money laundering and outlines
the structured activities involved in the process. Additionally, it
explores the electronic methods employed in money laundering,
highlighting the various functions carried out using electronic gadgets
and the internet. The author emphasizes the importance of
understanding the characteristics, reasons, and negative impacts of
money laundering on businesses and economies to gain a clear
perspective on the issue. Money laundering is a criminal act in most
countries, and economically developed nations have established
strong barriers against it. However, the practice persists, and the paper
examines how launderers circumvent these barriers and employ
innovative, illegal methods to convert their illicit money into
legitimate funds. The study found that money launderers employ
various techniques to evade detection and prosecution, including
layering, integration, and placement. Electronic money laundering is
also a growing concern, with online platforms, digital currencies, and
anonymous payment systems providing new avenues for launderers
to conceal their activities. This paper provides an overview of money
laundering and its detrimental effects on the global economy. It
underscores the need for continued efforts by governments, financial
institutions, and law enforcement agencies to combat this menace.
Additionally, it highlights the importance of vigilance and developing
innovative strategies to detect and prevent money laundering.
Money laundering is the process of transforming the proceeds of crime into ostensibly legitimate money or other assets. However, in a number of legal and regulatory systems, the term money laundering has become conflated with other forms of financial crime, and sometimes used more generally to include misuse of the financial system (involving things such as securities, digital currencies, credit cards, and traditional currency), including terrorism financing and evasion of international sanctions. This is a process whereby the origin of funds generated by illegal means is concealed (drug trafficking, fraud, gun smuggling, corruption, etc.)
Money Laundering: A Three-Step Secret GameMd Arman
This paper describes, theoretically, what money laundering is and how it is done following some partnered
activities over time. This paper also looks for electronic money laundering and finds some related and predefined
functions which are completed using electronic gadgets and the Internet. A systematic literature review is
conducted by employing a meta-analysis approach. To give a clear view on money laundering, the author thinks
it is necessary to make it clear first about the characteristics of money laundering, the reasons behind it, and how
it negatively impacts the business and economy of a country. Money laundering is a crime in most nations, and
economically developed countries built a strong fortress against money launderers, but laundering is not stopped.
So, this paper tries to discover what and how the launderers launder and discover inventive ways to turn their
unlawful cash lawful, which the legal authority cannot detect. This paper shows the step-by-step procedures of
these globally illegal money-whitening activities, mostly theoretically
Flu Vaccine Alert in Bangalore Karnatakaaddon Scans
As flu season approaches, health officials in Bangalore, Karnataka, are urging residents to get their flu vaccinations. The seasonal flu, while common, can lead to severe health complications, particularly for vulnerable populations such as young children, the elderly, and those with underlying health conditions.
Dr. Vidisha Kumari, a leading epidemiologist in Bangalore, emphasizes the importance of getting vaccinated. "The flu vaccine is our best defense against the influenza virus. It not only protects individuals but also helps prevent the spread of the virus in our communities," he says.
This year, the flu season is expected to coincide with a potential increase in other respiratory illnesses. The Karnataka Health Department has launched an awareness campaign highlighting the significance of flu vaccinations. They have set up multiple vaccination centers across Bangalore, making it convenient for residents to receive their shots.
To encourage widespread vaccination, the government is also collaborating with local schools, workplaces, and community centers to facilitate vaccination drives. Special attention is being given to ensuring that the vaccine is accessible to all, including marginalized communities who may have limited access to healthcare.
Residents are reminded that the flu vaccine is safe and effective. Common side effects are mild and may include soreness at the injection site, mild fever, or muscle aches. These side effects are generally short-lived and far less severe than the flu itself.
Healthcare providers are also stressing the importance of continuing COVID-19 precautions. Wearing masks, practicing good hand hygiene, and maintaining social distancing are still crucial, especially in crowded places.
Protect yourself and your loved ones by getting vaccinated. Together, we can help keep Bangalore healthy and safe this flu season. For more information on vaccination centers and schedules, residents can visit the Karnataka Health Department’s official website or follow their social media pages.
Stay informed, stay safe, and get your flu shot today!
Report Back from SGO 2024: What’s the Latest in Cervical Cancer?bkling
Are you curious about what’s new in cervical cancer research or unsure what the findings mean? Join Dr. Emily Ko, a gynecologic oncologist at Penn Medicine, to learn about the latest updates from the Society of Gynecologic Oncology (SGO) 2024 Annual Meeting on Women’s Cancer. Dr. Ko will discuss what the research presented at the conference means for you and answer your questions about the new developments.
Acute scrotum is a general term referring to an emergency condition affecting the contents or the wall of the scrotum.
There are a number of conditions that present acutely, predominantly with pain and/or swelling
A careful and detailed history and examination, and in some cases, investigations allow differentiation between these diagnoses. A prompt diagnosis is essential as the patient may require urgent surgical intervention
Testicular torsion refers to twisting of the spermatic cord, causing ischaemia of the testicle.
Testicular torsion results from inadequate fixation of the testis to the tunica vaginalis producing ischemia from reduced arterial inflow and venous outflow obstruction.
The prevalence of testicular torsion in adult patients hospitalized with acute scrotal pain is approximately 25 to 50 percent
Title: Sense of Smell
Presenter: Dr. Faiza, Assistant Professor of Physiology
Qualifications:
MBBS (Best Graduate, AIMC Lahore)
FCPS Physiology
ICMT, CHPE, DHPE (STMU)
MPH (GC University, Faisalabad)
MBA (Virtual University of Pakistan)
Learning Objectives:
Describe the primary categories of smells and the concept of odor blindness.
Explain the structure and location of the olfactory membrane and mucosa, including the types and roles of cells involved in olfaction.
Describe the pathway and mechanisms of olfactory signal transmission from the olfactory receptors to the brain.
Illustrate the biochemical cascade triggered by odorant binding to olfactory receptors, including the role of G-proteins and second messengers in generating an action potential.
Identify different types of olfactory disorders such as anosmia, hyposmia, hyperosmia, and dysosmia, including their potential causes.
Key Topics:
Olfactory Genes:
3% of the human genome accounts for olfactory genes.
400 genes for odorant receptors.
Olfactory Membrane:
Located in the superior part of the nasal cavity.
Medially: Folds downward along the superior septum.
Laterally: Folds over the superior turbinate and upper surface of the middle turbinate.
Total surface area: 5-10 square centimeters.
Olfactory Mucosa:
Olfactory Cells: Bipolar nerve cells derived from the CNS (100 million), with 4-25 olfactory cilia per cell.
Sustentacular Cells: Produce mucus and maintain ionic and molecular environment.
Basal Cells: Replace worn-out olfactory cells with an average lifespan of 1-2 months.
Bowman’s Gland: Secretes mucus.
Stimulation of Olfactory Cells:
Odorant dissolves in mucus and attaches to receptors on olfactory cilia.
Involves a cascade effect through G-proteins and second messengers, leading to depolarization and action potential generation in the olfactory nerve.
Quality of a Good Odorant:
Small (3-20 Carbon atoms), volatile, water-soluble, and lipid-soluble.
Facilitated by odorant-binding proteins in mucus.
Membrane Potential and Action Potential:
Resting membrane potential: -55mV.
Action potential frequency in the olfactory nerve increases with odorant strength.
Adaptation Towards the Sense of Smell:
Rapid adaptation within the first second, with further slow adaptation.
Psychological adaptation greater than receptor adaptation, involving feedback inhibition from the central nervous system.
Primary Sensations of Smell:
Camphoraceous, Musky, Floral, Pepperminty, Ethereal, Pungent, Putrid.
Odor Detection Threshold:
Examples: Hydrogen sulfide (0.0005 ppm), Methyl-mercaptan (0.002 ppm).
Some toxic substances are odorless at lethal concentrations.
Characteristics of Smell:
Odor blindness for single substances due to lack of appropriate receptor protein.
Behavioral and emotional influences of smell.
Transmission of Olfactory Signals:
From olfactory cells to glomeruli in the olfactory bulb, involving lateral inhibition.
Primitive, less old, and new olfactory systems with different path
The prostate is an exocrine gland of the male mammalian reproductive system
It is a walnut-sized gland that forms part of the male reproductive system and is located in front of the rectum and just below the urinary bladder
Function is to store and secrete a clear, slightly alkaline fluid that constitutes 10-30% of the volume of the seminal fluid that along with the spermatozoa, constitutes semen
A healthy human prostate measures (4cm-vertical, by 3cm-horizontal, 2cm ant-post ).
It surrounds the urethra just below the urinary bladder. It has anterior, median, posterior and two lateral lobes
It’s work is regulated by androgens which are responsible for male sex characteristics
Generalised disease of the prostate due to hormonal derangement which leads to non malignant enlargement of the gland (increase in the number of epithelial cells and stromal tissue)to cause compression of the urethra leading to symptoms (LUTS
263778731218 Abortion Clinic /Pills In Harare ,sisternakatoto
263778731218 Abortion Clinic /Pills In Harare ,ABORTION WOMEN’S CLINIC +27730423979 IN women clinic we believe that every woman should be able to make choices in her pregnancy. Our job is to provide compassionate care, safety,affordable and confidential services. That’s why we have won the trust from all generations of women all over the world. we use non surgical method(Abortion pills) to terminate…Dr.LISA +27730423979women Clinic is committed to providing the highest quality of obstetrical and gynecological care to women of all ages. Our dedicated staff aim to treat each patient and her health concerns with compassion and respect.Our dedicated group ABORTION WOMEN’S CLINIC +27730423979 IN women clinic we believe that every woman should be able to make choices in her pregnancy. Our job is to provide compassionate care, safety,affordable and confidential services. That’s why we have won the trust from all generations of women all over the world. we use non surgical method(Abortion pills) to terminate…Dr.LISA +27730423979women Clinic is committed to providing the highest quality of obstetrical and gynecological care to women of all ages. Our dedicated staff aim to treat each patient and her health concerns with compassion and respect.Our dedicated group of receptionists, nurses, and physicians have worked together as a teamof receptionists, nurses, and physicians have worked together as a team wwww.lisywomensclinic.co.za/
micro teaching on communication m.sc nursing.pdfAnurag Sharma
Microteaching is a unique model of practice teaching. It is a viable instrument for the. desired change in the teaching behavior or the behavior potential which, in specified types of real. classroom situations, tends to facilitate the achievement of specified types of objectives.
New Drug Discovery and Development .....NEHA GUPTA
The "New Drug Discovery and Development" process involves the identification, design, testing, and manufacturing of novel pharmaceutical compounds with the aim of introducing new and improved treatments for various medical conditions. This comprehensive endeavor encompasses various stages, including target identification, preclinical studies, clinical trials, regulatory approval, and post-market surveillance. It involves multidisciplinary collaboration among scientists, researchers, clinicians, regulatory experts, and pharmaceutical companies to bring innovative therapies to market and address unmet medical needs.
Pulmonary Thromboembolism - etilogy, types, medical- Surgical and nursing man...VarunMahajani
Disruption of blood supply to lung alveoli due to blockage of one or more pulmonary blood vessels is called as Pulmonary thromboembolism. In this presentation we will discuss its causes, types and its management in depth.
Title: Sense of Taste
Presenter: Dr. Faiza, Assistant Professor of Physiology
Qualifications:
MBBS (Best Graduate, AIMC Lahore)
FCPS Physiology
ICMT, CHPE, DHPE (STMU)
MPH (GC University, Faisalabad)
MBA (Virtual University of Pakistan)
Learning Objectives:
Describe the structure and function of taste buds.
Describe the relationship between the taste threshold and taste index of common substances.
Explain the chemical basis and signal transduction of taste perception for each type of primary taste sensation.
Recognize different abnormalities of taste perception and their causes.
Key Topics:
Significance of Taste Sensation:
Differentiation between pleasant and harmful food
Influence on behavior
Selection of food based on metabolic needs
Receptors of Taste:
Taste buds on the tongue
Influence of sense of smell, texture of food, and pain stimulation (e.g., by pepper)
Primary and Secondary Taste Sensations:
Primary taste sensations: Sweet, Sour, Salty, Bitter, Umami
Chemical basis and signal transduction mechanisms for each taste
Taste Threshold and Index:
Taste threshold values for Sweet (sucrose), Salty (NaCl), Sour (HCl), and Bitter (Quinine)
Taste index relationship: Inversely proportional to taste threshold
Taste Blindness:
Inability to taste certain substances, particularly thiourea compounds
Example: Phenylthiocarbamide
Structure and Function of Taste Buds:
Composition: Epithelial cells, Sustentacular/Supporting cells, Taste cells, Basal cells
Features: Taste pores, Taste hairs/microvilli, and Taste nerve fibers
Location of Taste Buds:
Found in papillae of the tongue (Fungiform, Circumvallate, Foliate)
Also present on the palate, tonsillar pillars, epiglottis, and proximal esophagus
Mechanism of Taste Stimulation:
Interaction of taste substances with receptors on microvilli
Signal transduction pathways for Umami, Sweet, Bitter, Sour, and Salty tastes
Taste Sensitivity and Adaptation:
Decrease in sensitivity with age
Rapid adaptation of taste sensation
Role of Saliva in Taste:
Dissolution of tastants to reach receptors
Washing away the stimulus
Taste Preferences and Aversions:
Mechanisms behind taste preference and aversion
Influence of receptors and neural pathways
Impact of Sensory Nerve Damage:
Degeneration of taste buds if the sensory nerve fiber is cut
Abnormalities of Taste Detection:
Conditions: Ageusia, Hypogeusia, Dysgeusia (parageusia)
Causes: Nerve damage, neurological disorders, infections, poor oral hygiene, adverse drug effects, deficiencies, aging, tobacco use, altered neurotransmitter levels
Neurotransmitters and Taste Threshold:
Effects of serotonin (5-HT) and norepinephrine (NE) on taste sensitivity
Supertasters:
25% of the population with heightened sensitivity to taste, especially bitterness
Increased number of fungiform papillae
11.money laundering concept significance and its impact
1. European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 4, No.2, 2012
Money Laundering: Concept, Significance and its Impact
Vandana Ajay Kumar
Department of Laws, Panjab University, Chandigarh,
*Email: vandana@puchd.ac.in
Abstract:
Money laundering is the process by which large amount of illegally obtained money, from drug trafficking,
Terrorist activity or other serious crimes, is given the appearance of having originated from the Legitimate
source. Money laundering has an adverse impact on economy and political stability of country and hence
such an activity must be curbed with an iron hand. Therefore, nations of the world must join hands and
adopt measures to dismantle syndicates engaged in money laundering by resorting to aggressive
enforcement of law. An attempt has been made in this article to explain the Concept, Significance and its
impact.
“Capital as such is not evil,
it is its wrong use that is Evil,
Capital in some form or other will always be needed”
- Mohandas K.
Gandhi
Introduction:
If conducts a survey asking what is Money Laundering? The general guesses from most people would be
that it must be something related to drying, washing or may be dry cleaning of the currency notes. To some
extent correct but layman don’t know much of this world’s third largest industry. As per IMF reports the
turnover of this industry could be somewhere around $1.5 trillion.
Money laundering is the process by which large amount of illegally obtained money (from drug trafficking,
terrorist activity or other serious crimes) is given the appearance of having originated from the Legitimate
source. But in simple terms it is the conversion of black money into white money. This takes one back to
cleaning the huge piles of cash. If done successfully, it allows the criminals to maintain control over their
proceeds and ultimately to provide a legitimate cover for their source of income. Money laundering plays a
fundamental role in facilitating the ambitions of the drug trafficker, the terrorist, the organized criminal, the
insider dealer, the tax evader as well as the many others who need to avoid the kind of attention from the
authorities that sudden wealth brings from illegal activities. These criminal enterprises seek to obtain
money and power through criminal conduct and then attempt to infiltrate the legitimate society, thereby
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ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 4, No.2, 2012
distorting the terms of the compact. They generate millions upon millions of dollars for the members of the
enterprise and allow their associates to live lavish lifestyles that have been forged from the misery and
despair that their criminal activity produces.
A. Concept of Money Laundering
“Money laundering is called what it is because that perfectly described
what takes place-illegal of dirty, money is put through a cycle of
transactions or washed, so that it comes out the other end as legal, or
clean money. In other words, the source of illegally obtained funds is
obscured through a succession of transfers and deals in order that those
same funds can eventually be made to appear as legitimate income.”
- Robinson
Money Laundering as an expression is one of fairly recent origin. Money laundering is a sophisticated
crime not to be taken very seriously at the first glance by anyone in the society. As compared to street
crimes, it is a modern crime. At times people also refer to it as a victimless crime but the reality is that it
is not a crime against a particular individual, but it is a crime against nations, economies government, rule
of law and world at large. Money laundering has become a world wide menace.
The goal of a large number of criminal acts is to generate profit for the individual or group that
carries out the act and then hide either the source or the destination of money. 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.
Some of the crimes like-illegal arms sales, smuggling, corruption, drug trafficking and the activities of
organized crime including tax evasion generate huge sums. Insider trading, bribery and computer fraud
schemes 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. Otherwise, they can’t use the money because it would connect them to the
criminal activity, and law enforcement officials would seize it.
If done successfully, it allows the criminals to maintain control over their proceeds and ultimately to
provide a legitimate cover for their source of income. Where criminals are allowed to use the
.
proceeds of crime, the ability to launder such proceeds makes crime more attractive
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B. Significance of Money Laundering
Money laundering is an issue that has gained increasing significance following the events of 9/11(attack on
the twin towers in the U.S).Since then the world has focused its attention on the entire concept of money
laundering and has recognized it as a source of the funding of terrorist activities.The globalization process
and the communications revolution have made crime increasingly international in scope, and the financial
aspects of crime have become more complex due to rapid advances in technology. The spread of
international banks all over the world has facilitated the transmission and the disguising of the origin of
funds. This may have devastating social consequences and poses a threat to the security of any
country,large or small.It provides fuel for drug dealers, terrorists, illegal arms dealers,corrupt public
officials and all types of criminals to operate and expand their criminal activities.Laundering enables
criminal activity to continue.
Money laundering causes a diversion of resources to less productive areas of the economy which in turn
depresses economic growth. The possible social and political costs of money laundering, if left unchecked
or dealt with ineffectively, are serious. The economic and political influence of criminal
organizations can weaken the social fabric, collective ethical standards, and ultimately the democratic
institutions of society.
C. Impact of money laundering on the economy of the country
“The Fish sees the bait, not the hook;
A person sees the gain, not the danger”.
- A chinese Proverb.
The Money laundering has negative effects on economic development.Money laundering constitutes a
serious threat to national economies and respective governments. The infiltration and sometimes saturation
of dirty money into legitimate financial sectors and nations accounts can threaten economic and political
stability.Economic crimes have a devastating effect on a national economy since potential victims of such
crimes are far more numerous than those in other forms of crime.Economic crimes also have the potential of
adversely affecting people who do not prima-facie, seem to be the victims of the crime. For example, tax
evasion results in loss of government revenue, thus affecting the potential of the government to spend
on development schemes thereby affecting a large section of the population who could have
benefited from such government expenditure.
A company fraud not only results in cheating of the people who have invested in that company but may also
adversely affects investors’ confidence and eventually the growth of the economy.
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The negative economic effects of money laundering on economic development are difficult to quantify,
yet it is clear that such activity damages the financial-sector institutions that are critical to economic growth,
reduces productivity in the economy’s real sector by diverting resources and encouraging crime and
corruption, which slow economic growth, and can distort the economy’s external sector international trade
and capital flows to the detriment of long-term economic development.
Developing countries’ strategies to establish offshore financial centre (hereinafter OFCS) as vehicles for
economic development are also impaired by significant money laundering activity through OFC channels.
The negative effects of money laundering activities may be on financial sector, real sector of formal
agents such as state, financial institutions and banking sector.
The Financial Sector
Financial sector may get negative effects of money laundering especially financial institutions including
banking and non –banking financial institutions (NBFIs),and equity markets- may directly or indirectly be
affected.Basically,these institutions facilitate concentration of capital resources from domestic savings and
funds from abroad. These institutions provide impetus to furtherance of investment prospects by
providing conducive environment and efficient allocation of these resources to investment
projects which contributes substantially to long run economic growth.
Money Laundering impairs the sustainability and development of financial institutions in two ways:
1. Firstly the financial institutions are weakened directly through money laundering as there seems to be a
correlation between money laundering and fraudulent activities undertaken by employees of the institutions.
Similarly, with the increase in money laundering activities, major parts of financial institutions of a state are
vulnerable to crime by criminal elements. This strengthens the criminals and other parallel system of money
laundering channels. This may lead to the eviction of less equipped competitors & giving rise to monopoly.
2. Customer trust is fundamental to the growth of sound financial institutions, and the perceived risk to the
growth of sound financial institutions, and the perceived risk to depositors and investors from institutional
fraud and corruption is an obstacle to such trust.
The Real Sector
Money laundering adversely affects economic growth through the real sector by diverting resources to
less productive activities and by facilitating domestic corruption and crime.
‘‘The less expensive the money laundering input to crime is,
As a result of lax anti-money laundering policies,
The more productive (active)the criminal will be’’.
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Money laundering carried out through the channels other than financial institutions includes more “sterile”
investments such as real estate, art, antiques, jewelry and luxury automobiles, or investments of the type that
gives lower marginal productivity in an economy. These sub optimal allocations of resource give lower level
of economic growth which is a serious detriment to economic growth for developing countries. Criminals
reinvest their proceeds in companies and real estate with the purpose to make further profits, legal or illegal.
Most of these investments are in sectors that are familiar to the criminal, such as bar, restaurant, prostitution.
The real estate sector is the largest and most vulnerable sector for money laundering. Real estate is important
for money laundering, because it is a non-transparent market where the values of the objects are often
difficult to estimate and where big value increases can happen and is an efficient method to place
large amounts of money. The price increase in real estate is profitable and the annual profits on real business
create a legal basis for income. The real estate has the following features, which make it attractive for
criminal money:
• a safe investment
• the objective value is difficult to assess
• it allows to realize “white” returns.
The External Sector
Money laundering activities may impair any country’s economy through the trade and international capital
flows.Excessive illicit capital flight from a state may be facilitated by either domestic financial institutions or
by foreign financial institutions.That illicit capital flight drains scarce resources specially from developing
economies; so by that way economic growth of respective economy is adversely affected58.Money laundering
negatively affects trust of local citizens in their own domestic financial institutions as well as trust of foreign
investors and financial institutions in a state’s financial institution which ultimately contributes to economic
growth. Money laundering channels may also be associated with distortions of a countrys’ imports and
exports. As with the involvement of criminal elements on the import side they may use illicit proceeds to
purchase imported luxury goods, either with laundered funds or as part of the process of laundering such
funds.
Such imports do not generate domestic economic activity or employment, and in some cases can artificially
depress domestic prices, thus reducing the profitability of domestic enterprises.
The integrity of the banking and financial services market place depends heavily on the perception that it
functions within a framework of high legal, professional and ethical standards. A reputation for integrity is
the one of the most valuable assets of a financial institution. Dangers for the reputation can occur when a
country deliberately declares to want to attract ‘criminal money’.
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If funds from criminal activity can be easily processed through a particular institution-either because its
employees or directors have been bribed or because the institution turns a blind eye to the criminal nature of
such funds-the institution could be drawn into active complicity with criminals and become part of the
criminal network itself. Evidence of such complicity will have a damaging effect on the attitudes of other
financial intermediaries and of regulatory authorities as well as ordinary customers. Money laundering not
only threatens the financial system of a country by taking away command of the economic policy from the
government, but also deteriorates the moral and social standing of the society by exposing it to activities such
as drug trafficking, smuggling, corruption and other criminal activities.
The Global Sector
Money Laundering has become a global problem. Criminals target foreign jurisdiction with liberal bank
secrecy laws and weak anti-money laundering regulatory regimes as they transfer illicit funds through
domestic and international financial institutions often with the speed and ease of faceless internet
transactions. This easy and vast infiltration of Criminal proceeds into world market can be stabilize them
and can have a corrupting effect on those who work within the market system. The penetration of criminals
into the legitimate markets can also shift the balance of economic power from responsible and responsive
entities to rogue agents who have no political or social accountability. In short, when criminal enterprises
are able to enjoy the fruits of the criminal ventures, the world market can be destabilized, leaving some
countries vulnerable to persuasion and interference by corrupt organization.
CONCLUSION
Thus one can safely conclude that Money Laundering is global problem and must attract global concerns.
Without international cooperation money laundering cannot be controlled. The criminals outsmart the
enforcing agencies and deploy a team of experts like chartered accountants, attorneys, bankers mafia, to
disguise their illicit money and masquerade it as legitimate income. These experts charge fee between 10 to
15% of the sum involved. The nexus between white-collared criminals, politicians, enforcing agencies and
mafias cannot be rules out. Bankers play the most prominent role and without their connivance the
operation cannot be carried out. Development of new high-tech coupled with wire transfer of funds has
further aggravated the difficulties to detect the movement of slush funds. The international nature of money
laundering requires international law enforcement cooperation to successfully investigate and prosecute
those that instigate these complex criminal schemes. Money laundering must be combated mainly by penal
means and within the frameworks of international cooperation among judicial and law enforcement
authorities. Last but not the least it is vitally important to keep in mind that simple enactment of
Anti-Money Laundering Laws are not enough, the Law enforcement Community must keep pace with the
ever changing dynamics of money Launderers who constantly evolves innovative methods which helps
them to stay beyond the reach of law.
REFERENCES
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Vol 4, No.2, 2012
1. Dadoo Abhishek, Money Laundering, <www.globalpolitician.com, Feb 18, 2009
2. Description of Money Laundering and Terrorist Financing’’, Available online
<http://www.gamblingcontrol.org/userfiles/file/bs.pdf.
3. Gupta, Dr. Anuradha: Money Laundering and Financing of Terrorism-A Study on Methods to
Fight Money laundering in India and USA, Journal of the Institute of Chartered Accountants of
India, volume 58,No.10,APRIL 2010
4. Henry Fielding (1707-54), English Novelist, Dramatist, Mariana, in the miser, Act 3, SC.7,
The Columbia Dictionary of quotations
5. Mc Dowel John, ‘The consequences of Money Laundering And Financial crime ”Bureau of
International Narcotics and Law Enforcement Affairs, U.S Department of State
6. Mohandas K. Gandhi (1869-1948), Indian Political and spiritual leader, Harijan (28 July1940).
7. Nelson, H.,Lankhorst, F.Prevention of Organised Crime’Edition 2004
8. Shah, Syed Azhar Hussain, ‘Governance of Money Laundering’
9. Singh, Kaviraj, Money Laundering India Law’
10. Somwanshi Sanjay, Prevention of Money Laundering Act, 2002: An overview
11. Steel Billy, ‘Money Laundering is a world-wide problem’
12. William David, “Governance, Security And development: The case of Money laundering,” centre
for international politics.
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