Money laundering is a form of financial transaction that conceals the identity of the source and destination and fuels an underground economy. It is basically used by criminals to conceal, transfer or seek to retain the proceeds of crime. It basically operates in all countries and the money earned in one country is transferred to another through a complex system of transferring money through "shell companies, holding companies and offshore accounts" (Chaikin, 1991; Komisar, 2001; Quirk, 1997; van Fossen, 2003)…
The world estimate for the amount of money involved in money laundering is around US$ 500 billion to US$ 1.5 trillion. This is a huge amount of money by any calculation to the financial systems involved. The problem is grim and the dimensions are enormous and the steps taken to contain this problem are monumental. Added to this is the money got from other countries through corrupt dictators. Chamberlain (2002) describes this scenario and illustrates the "difficulties involved in recovering assets that are the proceeds of grand corruption by politicians and officials who have held high office" in African countries. In these cases the corruption has reached the scale that the culprits ensure that their gains are put outside the jurisdiction of the victim country and laundered to disguise their origins. "Clearly the problem is enormous. It is also clear that money laundering extends far beyond hiding drug profits. In the UK this is evidenced in the legislation that has been enacted to counter this crime. For example, confiscation and money laundering provisions are contained in the Drug Trafficking Offences Act 1986 (DTOA), in the Criminal Justice Act 1988 and the Criminal Justice (International Co-operation) Act 1990. These provisions focus particularly on drug trafficking." 1
UK laws pertaining to money laundering
These laws address the issues of money laundering and financing terrorist outfits. In the UK, and also in other countries, these two have been recognized as very serious crimes. These two crimes greatly contribute to the globally ongoing unlawful activities of crimes that are organized by terrorist organizations and other criminals (Dayanath, 2003; Johnson, 2003). The scopes of these activities are difficult to gauge and the magnitude is unknown in the UK, since these activities are very secretive and enigmatic. The UK Government, however, has recently made moves to strengthen its laws and improve their ability to investigate these crimes on a global scale. 2
Two laws pertaining to Money Laundering were enacted in the UK in recent years since preventing money laundering and governing its legislation are relatively new concepts. With the 11/9 bombing that took place in New York these laws have become essential in containing these heinous crimes (Johnson, 2003). To put in very simple lay man terms, the UK law looks very strongly at those accused or even suspected of being involved in a money laundering racket. A person can be sentenced to 14 years in jail; what is significant here is that there can be no remission on this sentence. One cannot claim any kind of ignorance or coercion in this case and hence this cannot be treated as defence. Whether one likes it or not, if a person is aware that another person in an organization is guilty of money laundering of some sort, he or she is bound by law to report the same to the authorities.
Salient features of the law
Money laundering crimes are on the increase in the UK and hence these acts have come at the right juncture. It provides the general legal basis and framework ...
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A number of criminal activities are involved in the generation of money for this process. These criminal activities can involve different parties dealing with the exchange of drugs for money, the corruption activities, and the frauds that are done in the processes of accounting and also the tax evasion.
Thus, it involves “turning dirty money into clean money”, “washing drug money”, and “disguising criminal money”. The concept of money laundering has evolved over the years and hence money legitimately earned but not disclosed through above means for avoidance purposes involves money laundering.
Money laundering needs to be understood by all those involved in the financial system.
Money laundering is defined as a process which a criminal engages in a series of financial transactions that attempt to hide the origin and ownership of property obtained by illegal acts in an attempt to increase assets under the disguise of legal sources.
If I followed what was expected of me and write this report on how I spent my Day of Nonconformity, wouldn't I be contradicting myself Wouldn't I be conforming by living a Day of nonconformity
And then I realized this was an experiment after all, and I could not let my mind get trapped in an endless loop of reasoning, so I decided I could conform to the parameters of this social psychology experiment and be nonconforming in everything else.
The 1990 convention was modeled on the forum of FATF developed by the G-7 countries, but over the years with increasing developments in the tools for fighting money laundering the convention has become increasingly inadequate.
The need for rectification has forced the member states into revisiting the convention and drawing up a protocol that would adapt the effective features of the 1990 convention combined with recent developments in line with current requirements of sophisticated technology and vulnerability of the non financial sector against money laundering.
The study finds out that political parties are perceived to be the most corrupt for the general public, followed closely by the public officials/ civil servants. This is worthwhile here to mention that unlike the national defence forces (army etc.) entire police control happens to be in the hands of politicians.
Criminals and terrorist organisations have a need for hiding funds acquired illegally through morally repugnant means and terrorist organisations need to launder money to hide their sources of finance to ensure that their operatives receive funding without raising
This crime is committed by the drug dealers, Big business men, Politicians, Illegal sales of arms, smuggling, corrupt officials, Mafia and private individuals and even states. This whole concept is basically the conversion of black money
The coverage of the predicate offense of money laundering in many countries such as United States has been expanded to include all crimes, which seek to launder criminal proceeds. Money laundering comprises of the following undertakings:
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