Money Laundering
Money laundering and the financing of terrorism are financial crimes with economic effects. They can threaten the stability of a country's financial sector or its external stability more generally. Effective anti-money laundering and combating the financing of terrorism regimes are essential to protect the integrity of markets and of the global financial framework as they help mitigate the factors that facilitate financial abuse. Action to prevent and combat money laundering and the financing of terrorism thus responds not only to a moral imperative, but also to an economic need." – Min Zhu, Deputy Managing Director of the IMf
An effective AML program requires a jurisdiction to have criminalized money laundering, given the relevant regulators and police the powers and tools to investigate; be able to share information with other countries as appropriate; and require financial institutions to identify their customers, establish risk-based controls, keep records, and report suspicious activities money laundering can make a bank instable may lay themselves open to direct losses from fraud.
Money laundering is the process of concealing the source of money obtained by illicit means.
• Bank capture: Money launderers or criminals buy a controlling interest in a bank, preferably in a jurisdiction with weak money laundering controls, and then move money through the bank without scrutiny.
• Real estate: Real estate may be purchased with illegal proceeds, then sold. The proceeds from the sale appear to outsiders to be legitimate income. Alternatively, the price of the property is manipulated; the seller will agree to a contract that under-represents the value of the property, and will receive criminal proceeds to make up the difference.[7]
• Black salaries: Companies might have unregistered employees without a written contract who are given cash salaries. Black cash might be used to pay them.[8]
• Fictional loans
the Prevention of Money-Laundering Act, 2002 came
An effective AML program requires a jurisdiction to have criminalized money laundering, given the relevant regulators and police the powers and tools to investigate; be able to share information with other countries as appropriate; and require financial institutions to identify their customers, establish risk-based controls, keep records, and report suspicious activities money laundering can make a bank instable may lay themselves open to direct losses from fraud.
Money laundering is the process of concealing the source of money obtained by illicit means.
• Bank capture: Money launderers or criminals buy a controlling interest in a bank, preferably in a jurisdiction with weak money laundering controls, and then move money through the bank without scrutiny.
• Real estate: Real estate may be purchased with illegal proceeds, then sold. The proceeds from the sale appear to outsiders to be legitimate income. Alternatively, the price of the property is manipulated; the seller will agree to a contract that under-represents the value of the property, and will receive criminal proceeds to make up the difference.[7]
• Black salaries: Companies might have unregistered employees without a written contract who are given cash salaries. Black cash might be used to pay them.[8]
• Fictional loans
the Prevention of Money-Laundering Act, 2002 came