The process of disguising the proceeds of crime in a try to hide their illicit origins and legitimize their future use.

1. Money Laundering

2.  What is Money Laundering?
 Effects on Economic Development
 Anti-Money Laundering Efforts
 Conclusion

3. What is Money Laundering?
Definition: The process of disguising the
proceeds of crime in a try to hide their illicit
origins and legitimize their future use.
Objective: To conceal true ownership and
origin of the proceeds, a desire to maintain
control, a need to change the form of the
proceeds.
Techniques: They can be simple, diverse,
complex, accurate, but secret.

4. Stages of money laundering
1- Predicate Crimes
*Corruption and Bribery

5. Stages of money laundering
1- Predicate Crimes
*Fraud

6. Stages of money laundering
1- Predicate Crimes
*Organized crime
*Drug and human trafficking
*Environmental crime

7. Stages of money laundering
1- Predicate Crimes
*Terrorism
*Other serious crimes.

8. Stages of money laundering
2- Placement
Moving and placing the funds into
financial institutions or the retail economy.
* Banks
* Brokerage firms
* Financial services
* Money transfer
* Realtors

9. Stages of money laundering
3- Layering
Multiple and sometimes complex financial
transactions are conducted to continue hide their
illegal nature.
* Change of currency into different currencies.
* Movements of money to different countries.

10. Stages of money laundering
4- Integration
Illicit funds re-enter the economy disguised
as legitimate business earnings.
* Securities
* Businesses
* Real estate
* Investment

12. Effects on Economic Development
 It will distort the economic data and complicate
government’s efforts to manage economic policy.
 It will have adverse consequences for interest and
exchange rate volatility.
 Reduce the annual GDP(Gross Domestic Product).
 Distorts investment and depresses productivity.
 Facilitates corruption and crime at the expense of
development.

13. Effects on Economic Development
 Can increase the risk of macroeconomic instability.
 Criminal organizations can transform productive
enterprises into sterile investments.
 Outbound capital flows: facilitating illicit capital flight.
 Inbound capital flows: reducing foreign investment.
 Trade: distorting prices and content.

14. Anti-Money Laundering Efforts
 Creating anti-money laundering regulatory and enforcement
organizations in countries and regional groupings.
- Financial Action Task Force (FATF), UN, Egmont Group
- Financial Crimes Enforcement Network (Fin CEN)
- Office of Foreign Assets Control (OFAC)
- Bank Secrecy Act (BSA) and the USA Patriot Act of 2001
 Cooperation between national governments.

15. Conclusion
 Criminals are now benefit from the globalization of
the world economy by transferring funds quickly
across international borders.
 Money laundering threatens economic
development.
 The international financial community should
strongly support anti-laundering efforts, and
cooperate to share information.
 Developing countries should impose anti-
laundering laws to improve the credibility not only
its financial sector, but its governance as well.

16. Thank you for your attention