Anti Money Laundering

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  • Topic: Money laundering, Economics, Bank
  • Pages : 4 (1345 words )
  • Download(s) : 1892
  • Published : April 23, 2006
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In today's high tech digital age, it has become increasingly more difficult for lawbreakers to conceal their illegally obtained funds through criminal business practices. Criminals are being forced to hide their money from government institutions to avoid taxation and investigations into their shady dealings. One way criminals go about hiding this ill gotten cash is to launder their money through banks, brokerage houses, investment firms and many other financial businesses to make it appear as if the money is clean and obtained legally. Money laundering is a method used by criminals to conceal their income obtained from criminal activities such as drug trafficking and organized crime. This process allows criminals to effectively legitimize their dirty money by mixing it with clean money. It usually involves a series of transactions from bank account to bank account with the hope of thwarting law enforcement and remaining unnoticed as a criminal. Money laundering has become a worldwide problem that has globally devastating effects. After the money is laundered it usually returns to the hands of drug dealers, terrorists, gun traffickers and other criminals so they may continue their harmful and dishonest illegal operations. The International Monetary Fund has stated that "the aggregate size of money laundering world wide is somewhere between two and five percent of the world's gross domestic product" (Wayne, 4). In a US currency this would be between $590 billion and $1.5 trillion, which continues to grow each year despite increased government initiatives to combat this practice. After September 11, 2001, money laundering became a top priority of the Bush administration's war on terrorism after it was revealed that funds supporting Al Qaeda were laundered through banks in Luxembourg. One way in which financial businesses are fighting back is by creating Anti-Money Laundering policies that make it extremely difficult for criminals to slip under the radar....
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