Money Laundering

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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 ?
Although authorities recognize the abuse of certain sectors by money launderers, the response of law enforcement entities is limited by lack of judicial capacity, corruption, and cumbersome current asset forfeiture laws.
Bob had established his credentials as a money launderer by luring dealers on the fringes of the cartels with his undercover colleague Emir Abreu.
Juan Manuel Alvarez Inzunza is a Mexico-based money launderer and drug trafficker who provides key money laundering services to high-ranking Sinaloa Cartel members.
"Britain's major money launderers have victims' blood on their hands," says Detective Superintendent David Clark.
But Nomura's recommendations was ironic in the extreme, essentially advising clients to substitute an admitted money launderer for an accused money launderer.
"This development has the potential of creating a suitable environment for money launderers and terrorist financers to exploit," it said.
Factors such as the large single payments and payouts involved can be attractive to money launderers. However, a large proportion of the transactions in this area are domestic and the sector is not cash-intensive.
However, council foreign affairs, defence and national security committee chairman Dr Salah Abdulrahman warned the amendment could allow money launderers to escape punishment.
If he wants to raise the subject of people fiddling, let him start with those tax evaders, many of them living in huge houses abroad which must be costing the country millions, along with the money launderers, the bank fat cats whose companies had to be bailed out by the taxpayer but are still rewarding themselves hefty bonuses which ultimately comes from the taxpayer.
Cyberspace offers opportunities for financial criminals to improve their illegal activities, money launderers learn rapidly the electronic payment instruments, the use of virtual casinos, online auctions, and virtual games, ensuring a legal facade in order to seize illicit income.
Dubai The Chief of Dubai Police has warned money launderers to take their activities elsewhere, as the UAE stands firmly against such crimes.
Money launderers are actively working on mechanisms to penetrate the banking cycle and unless our staff receive timely training, we are exposed to reputation and compliance risk."