Money Laundering in Saudi Arabia and the Efforts of Saudi Arabia to Combat Money Laundering - Thesis Example

Consequently, Saudi Arabia emphasized the significance of combating money laundering at any place without any kind of binary measures in this reverence. Necesssignificanceave has been taken to handle this problem and apart from setting up regulatory laws, its educational system has also been improved to ensure the problem is wiped out of the country. In the bargain, the government of Saudi Arabian is closely keeping an eye on the religious discussions and sermonizes in the mosques, and putting into practice the economic reforms to fully monitor the flow of money to the banks of Saudi and its other monetary charities and organizations. Propping up these endeavors will result in an advantageous state that is constructive and capable of preserving its security as well as the entire globe.

Money laundering is delineated as the carryout or act of indulging in the transaction of financial to obscugloberces, identities, or destinations of money obtained illegally. It is necessary to note that money laundering is different from theft as the two terms are often interchanged.

In its simplest form, it can be illustrated as an act of channeling money that comes from source X to appear as if it comes from another source Y. but in practice, money launderers strive to cover up the origins of money acquired through unlawful practices so that it appears as if it was obtained from lawful sources. Some time ago, the laundering of money was only carried out for organized crimes correlated to financial transactions. This definition has today been expanded by international regulators and governments to refer to any financial transaction that generates a value or asset as a result of an illegal act.

In fact in some countries, money laundering does not only involve money but any economic good, for instance, in the United Kingdom. IntroductionMoney laundering occurs in almost every country of the world. It is often noted that many governmental and regulatory authorities quote estimates for the amount of money laundered each year, either within their economies or worldwide. The most commonly cited figure is two to five percent worldwide, according to the International Monetary Fund statistics.

However, some academics dispute these figures claiming that they are simply guesses. John Walker (2007, 2004, and 1999) developed a model to estimate the development and size of money laundering activities at the global level. His model is based on the ordinary economic theory and relies on estimates of various distinct categories of misdemeanors in specific nations across the globe, a ballpark figure of the predicaments, which originate from crimes, and the likelihood that these predicaments globing laundered.

His model concludes that since the year 2000, the world’s money laundering activities may sum up to as much as three trillion US dollars per annum, (Walker, 2007), a figure that is disputed by Peter Reuter, who estimates that the cumulative global figure is in hundred billion dollars per annum (Reuter, 2007). However, whichever the figure, the fact is, it is always difficult to establish the exact figures concerning illegal acts.