Another important aspect of Money Laundering is that it is ipso facto illegal i.e. the acts that produce the money are always criminal in one or the other.
Now in simple words when some criminal activity generates great and heavy and huge amount of profits then that particular group of people involved must think of a way to take care of the funds without gaining attention. Criminals control their large amount of funds by not telling the correct source, moving the money to a place where they won’t get any attention and some even change the format. Criminals move their money between various banks, financial instruments and they keep on changing the size and shape of their holdings by using distinct currencies and also by accumulating to and subtracting from their funds so that it becomes more difficult and extremely hard to identify. Money laundering is basically an intimidation to the better functioning of our financial system and at the same time it can also be regarded as the Achilles heel of the criminal activities.(Web: Fatfagi)
It is a widely known fact that Money Laundering is prevalent and unavoidable in Europe. The EU (European Union) which is a political and an economic union has 27 countries which are located primarily in Europe. Now corruption and Money Laundering is at the highest level in Europe. To control this, the EU has come up with various policies, law and regulations but to no use. For example there is FATF (The Financial Action Task Force) which is an intergovernmental group. It issued a list of countries recently who fail to keep a track of the financial crime. Then there is MONEYVAL which was previously known as PC-R-EV. This basically was established to perform assessment exercises (both self and mutual) of the money laundering activities in Europe. It also reviews the procedures of The Financial Action Task Force. There is a
But now the definition is further elaborated by the government officials and internal regulators. It means any financial or monetary transactions which breed or produce…
78). These monies needed a way in which they were going to be presented as legitimate in order to avoid speculation from the government. The most common way that they made their money look legitimate was from the purchase of outwardly legitimate businesses that dealt in cash.
The author states that the government and various financial institutions have made significant efforts of preventing and detecting and fraud issues. This is when making transactions issues that involve dirty money. Corruption is a moral impunity that involves embezzlement of funds and bribery issues.
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.
This has resulted in internationalization of business and other financial systems. Moreover, negative problems have also taken an international dimension. Corruption and money laundering are examples of crimes that have become internationalized. Corruption is an economic crime that entails abuse of public office.
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.
Laundering ill-gotten money is a sinister business and it takes years for the system to come to grips with it. Unless some suspicious financial transaction takes place in a financial institution, it is very difficult to track "dirty" money. Practically all countries have laws to counter this peculiar situation, but how effective these laws are; is a moot question (Mark, 1998; Johnson & Desmond, 2003).
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.
All of his money and assets were products of his own criminal designs. Of course, he did not want his evident wealth and flashy lifestyle to be associated with dirty money, that is, the income gained from his felonious activities. Because of that, the story goes that he invested every penny he had in his infamous Laundromat business with service outlets spread all over.
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
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