Insurance Entities & Money Laundering

Insurance Entities Assigned to Money Laundering
1.0 Introduction
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
... Get more on HelpWriting.net ...

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 organized crime 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

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

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

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
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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

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
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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

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

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

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

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

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

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.

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 Temilolu
1.0 Introduction
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
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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

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 of crime 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

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
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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 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
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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

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 José Santacruz–Londoño. 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 Londoño, Castro–Meza and Rodriguez de Castro since the late 1980s to the early ...
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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 Londoño. 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

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

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

Banking Law Project : Money Laundering
Banking Law Project
MONEY LAUNDERING
Submitted to :
Rohit Kumar Dharua
BA.LLB, Section "B" , 1383067
Contents
INTRODUCTION 2
MONEY LAUNDERING IN INDIA 2
METHODS OF MONEY LAUNDERING 4
PUNISHMENT FOR MONEY LAUNDERING 5
STEPS TO PREVENT MONEY LAUNDERING 5
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

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 ... Show more content on Helpwriting.net ...
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
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"Mantas Scenarios are already coded, tested, and ready to use, enabling customers to realize benefits
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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

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

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

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

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, and Money 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

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 Sinaloa Cartel 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

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. 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

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

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.

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 ... Show more content on
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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

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

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

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

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

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

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

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

Insurance Entities & Money Laundering

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