Money Laundering

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Related to Laundering of Money: Anti Money Laundering

Money Laundering

Disguising the source of money generated through illegal activities so that it resembles legitimate income. Money laundering involves breaking up large amounts of cash into smaller transactions, changing its form through investments or deposits into bank accounts, and moving the money through seemingly legitimate businesses to bring it into mainstream economy.

Money Laundering

An illegal act in which one makes illegally obtained money appear to be legally obtained. For instance, one may route money obtained in drug trafficking through a shell company to give it the veneer of legitimacy. One formerly common example is the practice of exchanging illegally obtained money for coins and placing them into a soda machine. One then deposits money from the soda machine such that it looks like the money came from the purchase of sodas rather than from its real source.

money laundering

the conversion of money (often obtained illegally through crime) into foreign currencies through multi-bank deposits to hide their source of origin, through bureaux de changes and through investments in ‘legitimate’ businesses.

In 2000 the OECD backed an initiative (made the more urgent by the terrorist attacks on the USA) for countries (in particular, TAX HAVENS) to require greater disclosure and scrutiny of ‘suspect’ bank accounts.

References in periodicals archive ?
It also seriously damages emerging market countries that are especially vulnerable to laundering of money from illegal sources such as drug trafficking.
The laws are intended to curtail laundering of money by possible terrorists, but their effects are far-reaching.
[11] The United Nations and the Organization of American States (OAS) have determined that the laundering of money derived from serious crime represents a threat to the integrity, reliability, and stability of financial, as well as government, structures around the world.
Even more egregiously wrong is the laundering of money from drug sales by U.S.
The country was responding to allegations that Indians were using it for the laundering of money and other illicit activities.
The State Drug Control Service together with the State Service to Fight Economic Crimes, State Financial Intelligence Service and State Tax Service is conducting the investigation to bring to justice persons involved into drug trafficking, detection of their assets, schemes of move and laundering of money, the State Drug Control Service said.