Various measures have been reported against the growing institution of money laundering from the European end. The 1990 convention was introduced by the Council of Europe at a time when the global awareness of money laundering was minimal and the combat against it was in its initial phases…
The Council of Europe intends at developing a strategy that would conform to the global objectives, be easily adaptable in varying domestic structures and centre on the international fight against terrorism.
European Union's efforts against money laundering have been far more comprehensive and elaborated as compared to the Council of Europe. It has subjected its directives to repetitive rectification in order assimilate latest developments in the international standards and to adopt a model based on FATF's globally acclaimed measures.
Despite a huge time lapse in issuance of its 1st and 2nd Directive EU has imposed continuous changes in its basic structure in order to improve the efficiency of its mandate. This was evident from the centralizing of reporting system, introduction of FIU, extension of membership to non EU trade partners in the 2nd Directive and assuming the global policy of war against terrorism in its 3rd and most recent Directive.
EU stresses on the importance of identification and maintenance of original client records and has therefore expanded the roles of FIU and has given them access to government databases so as to spot suspicious cases. The inclusion of countries like Bulgaria to EC however would severely harm EU goals as their domestic structure recognizes money laundering as permissible as long as the government is receiving taxes.
In the aftermath of the 9/11 attacks at the twin towers, efforts against terrorism have gained momentum in the Western World and struggle is being made to cut the roots of such activities. Terrorism funding is an issue that has been repeatedly addressed in the media and on political forums, but the concern about money laundering, which is a superset of terrorist financing, is not novel and has been a matter of apprehension for long.
Concerted efforts have been made in order to combat the increasingly complex issue and various organizations like the FATF, Egmont Group, UN councils, EU were developed to design strategies in order to effectively solve the money laundering problems.
Over the last three decades the world community has amplified its efforts against money laundering. It was initially associated with drug trafficking but in the advent of September 11 attacks its connection with terrorist financing has further obscured the issue.
Traditionally considered to be a three stage process comprising of cash related proceeds, money laundering has developed into a notorious institution incorporating a list of techniques which further challenge the law enforcers and augment the sensitivity of the matter. The Annual Typology Reports published by the Financial Action Task Force ('FATF') demonstrated a list of techniques that have been utilized by the launders in legalizing their illicit proceeds. This not only portrayed the level of interest displayed by the criminal elements in money laundering but to an extent even expressed ...
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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.
[Your full name] [Instructor’s name] [Course name and code] December 8, 2011 Money Laundering Introduction According to the Article 1 of the 1990 European Communities (EC) Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime (Council of Europe), the term money laundering is defined as: The conversion or transfer of property, knowing that such property is derived from serious crime, for the purpose of concealing or disguising the illicit origin of the property or of assisting any person who is involved in committing such an offence or offences to evade the legal consequences of his action, and the concealment or disguise of the true nature, source, location,
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 is the result of various illegal activities. For example, across the US-Mexico border the drug trafficking business and illegal cash transfers from the US to Mexico is estimated at somewhere between $19 and $29 each year. It is difficult and cumbersome to understand how and in what way this cash is collected and delivered.
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.
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
First of all, it is vital that the concerned organizations put in place measures that can identify apprehensive activities that may be related to money laundering. Such measures would include ability to detect suspicious practices especially in the banks that would
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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