Money Laundering And Organized Crime

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
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. The government has also taken actions such as the Patriot Act which hopes to put an end to money laundering. In the following paragraphs we will take a more in-depth look at the process of money laundering, how it effects businesses and economies, and analyze measures being taken to fight this
Since banks have begun to implement measures to deter money laundering, criminals have found new ways around this. Criminals have started seeking out the help and advice of professionals such as accountants, lawyers, and stockbrokers. These financial professionals are known as "gatekeepers". "Notaries, solicitors, and accountants may be sought out by crime groups who desire to profit from their expertise in setting up schemes that will help to launder criminal proceeds" (JP Morgan Tranaut). These professionals have an immense understanding of how financial institutions run and are knowledgeable in ways around their systems. These experts can advise criminals on company information, help with legal arrangements, as well as circumvent tax ramifications. Another way these "gatekeepers" lend their services is to act as intermediaries between the criminals and financial centers in order to keep the criminal's identity a secret. When you look at all these factors, it is easy to see why money laundering has become so prevalent in society today and why criminals are coming up with new and ingenious ways to defraud the