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
This is my presentation about what is money laundering crime and what is the role of financial institutions in the fight against it. I used it during my speech for a bunch of Business School Students (ISM).
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
This is my presentation about what is money laundering crime and what is the role of financial institutions in the fight against it. I used it during my speech for a bunch of Business School Students (ISM).
Money Laundering and Terrorist Financing in a Nutshell: Chapter OneMd. Moulude Hossain
Financial Crime is an increasing concern for all financial institutions, which is developing rapidly and equally together with technology. May be not limited to money laundering and terrorist financing, these two form of financial crime deserve to be attended with utmost care.
The evolving challenges of Money Laundering (ML) and Terrorist Financing (TF) lead the evolution of anti-money laundering and counter terrorist financing convention and regulations. These conventions give birth of several international organizations to combat the impact of ML and TF.
Basics of Anti-Money Laundering : A Really Quick Primer
What is Money Laundering?
The act of concealing or disguising (laundering) of funds obtained through illegal activity
so that they appear to have been generated through legal, legitimate sources.
How is it Carried Out?
Shell companies, intermediaries and money transmitters usually transfer these funds around the world Banks and other financial institutions are the chosen medium for laundering these illegal funds
AML Regulations:
The Bank Secrecy Act is the most important Anti-Money Laundering (AML) regulation
The BSA requires financial institutions to:
Keep records of cash purchases of negotiable instruments
File reports of cash transactions exceeding $10,000 (daily aggregate amount)
Report suspicious activity that might signify money laundering, tax evasion, or other criminal activities
Implement a written, board-approved compliance monitoring program
The USA Patriot Act
Expands AML requirements to all financial institutions
Augments existing BSA framework
AML Best Practices:
In order to combat money laundering, banks should implement the following best practices:
Customer Identification Program (CIP)
Customer Due Diligence (CDD) Program
Bank Secrecy Act/Anti-Money Laundering Risk Assessment
Identification and Reporting of Suspicious Activity
Want to learn more about anti-money laundering process and best practices? ComplianceOnline webinars and seminars are a great training resource. Check out the following links:
http://www.complianceonline.com/anti-money-laundering-aml-compliance-program-seminar-training-80114SEM-prdsm?channel=amlppt
http://www.complianceonline.com/bsa-aml-ofac-risk-assessments-regulatory-requirements-seminar-training-80181SEM-prdsm?channel=ppt
http://www.complianceonline.com/bsa-aml-compliance-reporting-requirements-webinar-training-703352-prdw?channel=amlppt
http://www.complianceonline.com/bsa-aml-compliance-checklists-webinar-training-703178-prdw?channel=amlppt
http://www.complianceonline.com/bsa-aml-ofac-risk-assessments-and-evaluation-compliance-program-webinar-training-703493-prdw?channel=amlppt
http://www.complianceonline.com/best-practices-for-developing-risk-models-for-aml-bsa-monitoring-webinar-training-703628-prdw?channel=amlppt
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.
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.
Presentation on Financial Crimes. Money is one of the most important reasons behind all forms of crime whether Cyber or Internet crimes, Physical or Theft crimes. With the advancement of technology the crime has not decelerated but only esteemed and many more new techniques were by people and they were popularly called as Blackhat hackers. In this presentations we give an over view of the whole scenario.
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
In this report we have shown, the money laundering situation and anti- money laundering steps taken by Bangladesh. Besides, we have shown the global money laundering risk scores and Banladesh's position in this Index.
Money Laundering and Terrorist Financing in a Nutshell: Chapter OneMd. Moulude Hossain
Financial Crime is an increasing concern for all financial institutions, which is developing rapidly and equally together with technology. May be not limited to money laundering and terrorist financing, these two form of financial crime deserve to be attended with utmost care.
The evolving challenges of Money Laundering (ML) and Terrorist Financing (TF) lead the evolution of anti-money laundering and counter terrorist financing convention and regulations. These conventions give birth of several international organizations to combat the impact of ML and TF.
Basics of Anti-Money Laundering : A Really Quick Primer
What is Money Laundering?
The act of concealing or disguising (laundering) of funds obtained through illegal activity
so that they appear to have been generated through legal, legitimate sources.
How is it Carried Out?
Shell companies, intermediaries and money transmitters usually transfer these funds around the world Banks and other financial institutions are the chosen medium for laundering these illegal funds
AML Regulations:
The Bank Secrecy Act is the most important Anti-Money Laundering (AML) regulation
The BSA requires financial institutions to:
Keep records of cash purchases of negotiable instruments
File reports of cash transactions exceeding $10,000 (daily aggregate amount)
Report suspicious activity that might signify money laundering, tax evasion, or other criminal activities
Implement a written, board-approved compliance monitoring program
The USA Patriot Act
Expands AML requirements to all financial institutions
Augments existing BSA framework
AML Best Practices:
In order to combat money laundering, banks should implement the following best practices:
Customer Identification Program (CIP)
Customer Due Diligence (CDD) Program
Bank Secrecy Act/Anti-Money Laundering Risk Assessment
Identification and Reporting of Suspicious Activity
Want to learn more about anti-money laundering process and best practices? ComplianceOnline webinars and seminars are a great training resource. Check out the following links:
http://www.complianceonline.com/anti-money-laundering-aml-compliance-program-seminar-training-80114SEM-prdsm?channel=amlppt
http://www.complianceonline.com/bsa-aml-ofac-risk-assessments-regulatory-requirements-seminar-training-80181SEM-prdsm?channel=ppt
http://www.complianceonline.com/bsa-aml-compliance-reporting-requirements-webinar-training-703352-prdw?channel=amlppt
http://www.complianceonline.com/bsa-aml-compliance-checklists-webinar-training-703178-prdw?channel=amlppt
http://www.complianceonline.com/bsa-aml-ofac-risk-assessments-and-evaluation-compliance-program-webinar-training-703493-prdw?channel=amlppt
http://www.complianceonline.com/best-practices-for-developing-risk-models-for-aml-bsa-monitoring-webinar-training-703628-prdw?channel=amlppt
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.
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.
Presentation on Financial Crimes. Money is one of the most important reasons behind all forms of crime whether Cyber or Internet crimes, Physical or Theft crimes. With the advancement of technology the crime has not decelerated but only esteemed and many more new techniques were by people and they were popularly called as Blackhat hackers. In this presentations we give an over view of the whole scenario.
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
In this report we have shown, the money laundering situation and anti- money laundering steps taken by Bangladesh. Besides, we have shown the global money laundering risk scores and Banladesh's position in this Index.
Panama Papers( leaks) ? The Biggest Financial leaks in History.Arslan Haider
What Panama papers,Mosack fonseca ,Offshore companies,Tax havens ,Effect on pakistan,Effect on international economy and mosack fonseca reaction on panamapapers.
Panama Papers - The Biggest Financial Leak in HistoryStinson
Heard about the Panama Paper leak but don't know what it is? Check out our quick summary for a run down of what's been going on.
Sources:
https://panamapapers.icij.org/blog/20160403-new-icij-investigation-exposes-rogue-offshore-industry.html
http://think-squad.com/post/142244482771/what-are-the-panama-papers-a-guide-to-the-biggest
http://nicaise.co.vu/post/142225824946
http://micdotcom.tumblr.com/post/142254284927/the-panama-papers-reveal-just-how-badly-the-1-is
http://mic.com/articles/139733/panama-papers-data-leak-these-are-the-11-biggest-politicians-named utm_source=policymicTBLR&utm_medium=main&utm_campaign=social#.c0eKdGslQ
https://news.vice.com/article/the-panama-papers-massive-leak-reveals-the-global-elites-secret-cash-havens
https://www.youtube.com/watch?v=F6XnH_OnpO0
A robust risk assessment process is central to maintaining a strong Anti-Money Laundering (AML) compliance program. In this new Accenture presentation we explore how financial services firms can set-up an effective process. Visit our fraud and financial crime blog post for more on AML risk assessment program: http://bit.ly/2aPlQQ7
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.)
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
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
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how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
6. Another definition:
Money laundering is the practice of engaging in
financial transactions in order to conceal the
identity, source, and/or destination of money, and is
a main operation of the underground economy.
According to Swiss Bank:
Money laundering is a process whereby the origin of
funds generated by illegal means is concealed (drug
trafficking, gun smuggling, corruption, etc.)
10. History/Background:
Terrorist financing, although only one aspect of
money laundering, has become a critical concern
following the events of September 11, 2001.
The international dimension of money laundering
was evident in a study of Canadian money laundering
police files. They revealed that over 80 per cent of all
laundering schemes had an international dimension.
12. Money Laundering & Globalization
The 20th Century was characterized by a number of structural
changes in the World economy. In the last decade of this
century, Globalization became the buzz word: bringing together
nation states to make the world a “global village” .
The main pillars of this process were Liberalization and
Deregulation of national economies.
Some of the prominent changes in this century were rapid
developments in financial information, exponential growth of
technology and communication which allowed money to
move anywhere in the world with speed and ease.
13. Money Laundering & Globalization
These developments combined, created both
opportunities and risks for the society. One of these risks
is the increase crime and criminality. The phenomenon
of money laundering is an aspect of organized crime
The society witnessed the proliferation of organized
criminal groups, operating across national boundaries and
sovereignties
14. How much money is laundered every year?
Since money laundering is an illegal activity therefore
one can only estimate the amount of money laundered
every year.
The International Monetary Fund, for example, had
stated in 1996 that the aggregate size of money
laundering in the world could be somewhere between 2-
5% of the world’s gross domestic product
This is $800 billion - $2 trillion in current US dollars.
17. PLACEMENT
Placement refers to the physical disposal of
bulk cash proceeds derived from illegal activity.
This is the first step of the money-laundering
process and the ultimate aim of this phase is to
remove the cash from the location of acquisition
so as to avoid detection from the authorities.
18. PLACEMENT
This is achieved by investing criminal money into
the legal financial system by opening up a bank
account in the name of unknown individuals or
organizations and depositing the money in that
account.
It may involve use of smurfing techniques
through which the launderers make numerous
deposits of amounts of money that are small
enough to avoid raising suspicion.
19. LAYERING
Layering is the movement of funds from
institution to hide their origin.
It consists of putting funds, which have entered
the financial system, through series of financial
operations to mislead potential investigators and to
give the funds the appearance of having legal
origins.
Again, obscuring the source is the key.
Launderers may purchase expensive items such
as jewelry, yachts, or cars in order to change the
money's form.
20. INTEGRATION
Integration refers to the reinsertion of the
laundered proceeds back into the economy in such
a way that they re-enter the financial system as
normal business funds.
The funds may be reintroduced in the economy
through, for instance, the purchase of luxury items
or through investment in assets such as shares in a
company or real estate.
21. OBJECTIVES OF MONEY
LAUNDERING
The main objectives of money launderers are thus to
place their funds in the financial system without
arousing suspicion, to move them around, often after a
series of complex transactions crossing multiple
jurisdictions so that it becomes difficult to identify their
original sources, and finally to move the funds back
into the financial and business systems so that they
appear legitimate.
22. OBJECTIVES OF MONEY
LAUNDERING
Money laundering is performed systematically and
clandestinely, making it difficult to identify exactly how
much money is involved, what methods are employed
and what the magnitude of the problem is.
23. OBJECTIVES OF MONEY
LAUNDERING
Hide: to reflect the fact that cash is often introduced to the
economy via commercial concerns which may knowingly or
not knowingly be part of the laundering scheme, and it is
these which ultimately p y prove to be the interface between
the criminal and the financial sector
Move: clearly explains that the money launderer uses
transfers, sales and purchase of assets, and changes the shape
and size of the lump of money so as to obfuscate the trail
between money and crime or money and criminal.
Invest: the criminal spends the money: he/she may invest it
in assets, or in his/her lifestyles
24. CRIMINALS OF MONEY LAUNDERING
Drug Dealers:
Drug dealers usually deal
with large amounts
of cash, making it difficult for
authorities to make a paper trail.
Large amounts of cash raise
red flags.
25. CRIMINALS OF MONEY LAUNDERING
Mobsters/
Gang members:
Like drug dealers, these
individuals (in a group form)
perform many
cash transactions while
maintaining safe networks
overseas.
26. Bad Politicians: With greater access to money and lobbyist
networking, the act of money laundering can seem to be one of
the best way to protect one's assets.
Bad Public Officials: Mainly, anyone in a position of
authority whose actions normally go unquestioned will take
advantage of an opportunity like this
Embezzlers: Cases have proven that people who have taken
money from an employer or their own place of business will
normally partake in activities to hide these newly acquired assets.
27. CRIMINALS OF MONEY LAUNDERING
Terrorists:
Terrorists are big in
money laundering.
Terrorist activities
must be financed;
otherwise explosives
and other weaponry
would not be an
obtainable asset.
29. CAUSES OF MONEY LAUNDERING
Absence of legislation
Evasion of tax
Increase in profits
To make black money
appear white money
Limited risks of
exposure
30. Absence of legislation against money laundering:
Absence of legislation against
money laundering give a free
hand to criminals. sometimes
governments itself is involved
they do this to win political
rivals, to please their allies and
to strengthen their rule. Also
CBR (Central Board of
Revenue) has never bothered to
unearth laundered
money, rather always joined
hands with the and money
launderers.
31. Evasion of tax:
Tax evaders launder money so that they can lie
about where money and assets came from in order
to evade tax. And sometimes they simply operate
outside that part of the economy where records are
kept.
32. Increase profits:
When people have incentive for more profit in
any particular area, such as in production and trading
of drugs, arms, and across the borders trade, they
start taking risk to earn higher profits.
33. To Appear black money legitimate:
In money laundering,
black money usually
becomes legitimate after
a series of process. And
less risk is involved of
being caught. This
doesn’t happen in other
economic crimes. So in
order to appear their
money more legitimate
they go for money
laundering.
34. Limited risks:
The availability of multiple
opportunities for personal
enrichment without the risk of
being exposed is another cause
of money laundering. Such
economic environments are
much more conducive to make
black money.
36. Economic Distortion and Instability:
Money launders "invest" their
funds in activities that are not
necessarily economically
beneficial to the country. They
redirect funds from sound
investments to low-quality
investments that hide their
proceeds, economic growth
can suffer.
37. Money laundering facilitates
corruption and crime:
Money laundering reduces
criminals'
Cost of crime, thereby increasing
the level of crime. Lax anti-
money-laundering policies
encourage the criminal activities
and corruption.
38. Loss of Control of Economic Policy:
Some phases of money laundering transactions are
"underground" or in the informal sector of the
economy, such transactions do not appear in
official monetary and financial statistics, thus giving
misleading information to policymakers and leads
to misallocation of resources.
39. Undermining the integrity of financial markets
Large sums of laundered money may arrive at a
financial institution but then disappear
suddenly, without notice, This can result in liquidity
problems to financial institutions.
Indeed, criminal activity has been associated with a
number of bank failures around
the globe.
40. Risks to Privatization Efforts:
Privatization can also serve as a vehicle to launder funds.
Criminal organizations have funds to purchase formerly
state-owned enterprises and use them for their own
interests.
41. Reputation at stake:
The reputation of country and its financial
institutions can be tarnished by an association with
money laundering. The negative reputation that results
from these activities diminishes legitimate global
opportunities and sustainable growth while attracting
international criminal organizations with undesirable
reputations and short-term goals. This can result in
diminished development and economic growth.
42. Money Laundering distorts capital and trade flows
Laundering of outbound illicit funds constitutes the
facilitation of illicit capital flight, which drains
resources from developing economies, and extensive
money laundering of all forms can deter legitimate
inward foreign direct investment (FDI). The obvious
effect of illicit capital flight is to worsen the scarcity of
capital in developing countries.
43. Evasion of tax:
Laundered money is usually untaxed, meaning the rest of
us ultimately have to make up the loss in tax revenue.
People who indulge into money laundering do not
declare the funds to the tax authorities. As a result taxes
are not paid for the ill-gotten funds. This effectively
reduces tax revenues for the governments and ends up
damaging economic development.
45. Increase In Criminal Activities:
Money Laundering allows drug traffickers, smugglers,
and other criminals to expand their operations. This
drives up the cost of government due to the need for
increased law enforcement and health care expenditures
(for example, for treatment of drug addicts) to combat
the serious consequences that result.
46. Concentration Of Power To Criminals
Among its other negative socioeconomic effects,
money laundering transfers economic power from
the market, government, and citizens to criminals. As
the economic power is in the hands of criminals so
they have a corrupting effect on all elements of
society. In extreme cases, it can lead to the virtual
take-over of legitimate government.
47. Undermines Democracy:
The economic and political influence of criminal
organizations can weaken the social fabric, collective
ethical standards, and ultimately the democratic
institutions of society.
48. EFFECTS OF MONEY
LAUNDERING ON BUSINESS:
If funds from criminal activity can be easily processed through a
particular business – 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 all stakeholders of
company i.e. shareholders, suppliers, customers, employees etc.
50. Sharif Brothers-Money Laundering Case:
Mian Nawaz Sharif and
Mian Shahbaz Sharif were
alleged of money
laundering and used the
Hudaibiya Paper Mills as
cover for money
laundering during the late
1990s. The Hudaibiya
Paper Mills case is still
pending in the National
Accountability Bureau.
52. President Zardari - Money Laundering Case:
NAB opened a fresh case against him: the so-called
BMW car reference (a BMW was imported in 1993
allegedly for Zardari and allegedly while evading
customs duties). Fast forward to March 2008 and
Zardari was cleared of all charges in the BMW case,
without recourse to the NRO.
53. President Zardari - Money Laundering Case:
In 1994 Ms Bhutto, Asif Zardari and their agent Jens
Schlegelmilch were alleged to have received $60
million in kickbacks from SGS in exchange for the
award of a pre-shipment inspection contract to the
Swiss company.
54. President Zardari - Money Laundering Case:
In 2003, Ms Bhutto and Mr. Zardari were convicted
of simple money laundering by a Geneva
investigating judge who handed down a six-month
suspended sentence.
The case was pending in the Swiss court when then
President Pervez Musharraf promulgated the
National Reconciliation Ordinance and the
government dropped the case in April 2008.
55.
56. Recommendations
The truth is that no individual nation has the power to stop
money laundering alone
If one country is hostile to laundering, criminals simply look
elsewhere for a place to clean their money. Therefore, Global
cooperation is essential.
The most prominent international organization in this respect is
probably the Financial Action Task Force (FATF), which has
33 member states and international organizations on its roster
list as of 2005. The FATF issued the "40 Recommendations" for
banks that have become the anti-money-laundering standard.
57. Recommendations
Some of these recommendations include:
Identify and do background checks on depositors.
Report all suspicious activity. (For example, if a background
check revealed that depositor A works in a steel factory, and he
typically deposits $2,000 every two weeks, a series of 10 $9,000
deposits over the course of two weeks should raise a red flag.)
Build an internal taskforce to identify laundering clues.
Financial institutions should not keep anonymous accounts or
accounts in obviously fictitious
58. Recommendations
Financial institutions should, in relation to politically
exposed persons, in addition to performing normal due
diligence measures:
Have appropriate risk management systems to determine whether
the customer is a politically exposed person.
Obtain senior management approval for establishing business
relationships with such customers.
Take reasonable measures to establish the source of wealth and
source of funds.
Conduct enhanced ongoing monitoring of the business
relationship.
59. Recommendations
Financial institutions should maintain, for at least five years, all
necessary records on transactions, both domestic or
international, to enable them to comply swiftly with information
Financial institutions should pay special attention to all complex,
unusual large transactions, and all unusual patterns of
transactions, which have no apparent economic or visible lawful
purpose
If a financial institution suspects or has reasonable grounds to
suspect that funds are the proceeds of a criminal activity, or are
related to terrorist financing, it should be required, directly by
law or regulation, to report promptly its suspicions to the
financial intelligence unit (FIU).
60. Organizations fighting for money laundering
Other global organizations fighting money
laundering include the
United Nations,
the International Monetary Fund,
The World Bank