Money Laundering

Running head: - MONEY LAUNDERING
MONEY LAUNDERING
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MONEY LAUNDERING1
Introduction
Money is the main reason that involves a person in any type of criminal activities.
Money laundering is the procedure by which the criminals convert their illegal money into
legal money. Terrorist also depends on the money to perform different terrorist attacks. The
terrorist derives the money from different sources. When the money is converted it lose its
related criminal identity. The different stages which are involved in the procedure of money
laundering are placement, layering and the integration.
Literature Review
Money laundering and Financial Crime
Money Laundering and the financial corruption related to it, is one of the biggest
concern in front of the world leaders. The crime is not only serious at the same time it is a
threat to human rights and the related law. The advancement of the technology serves as one
of the factor to the increase money laundering and financial crime activities. The money
laundering started in the early nineties. Money laundering can be stated as the procedure of
changing or transforming the illegally earned money into legal money in order to eliminate
the track of flowing illegal money. Money laundering is not limited to the financial
transactions which are relevant to the criminal activities, however it relates to all the
transaction which is an outcome of illegal activities. Initially the money laundering was
introduced with the drug trafficking as more of the illegal money comes from selling of
illegal weapons, human trafficking and issues like corruption. The money laundering
comprises of three phase. The phases are named as the placement, layering and integration
phase. The process of money laundering is a serious matter and it is analysed carefully and
systematically. It is stated that the terrorist financing is related to illegal acts. The act of

MONEY LAUNDERING2
providing funding to a particular terrorist group or to an individual terrorist involved in
terrorist activities is also a crime and unlawful act.
Financial Crime Related to Money Laundering
Money laundering and economic crime are interrelated to each other. Money
laundering and financial crime under goes different stages. The stage of the placement refers
to the entry into the legal financial process. The second stage is the layering which provides
link for the initial stages with the final stage. The last stage is the integration which is the
refund stage made to the legitimate economy for the process of extraction .The most popular
money launders are the group of mafia and cartels who are involved with terrorism. The
financial crime can occur in number of ways and the common crimes related to the finance
sector re the funding provided to the terrorist, fraud, counterfeiting and identity theft. The
criminals offering assistance to the terrorist generally use different types of techniques which
are difficult to detect and catch. It is common that these criminals will have connection with
the government and business sectors including the employees of the financial institute,
accountant and the employees of the government sectors. Banking sectors related to the
jurisdictions having regulations that are less effective rules and regulations are the one which
are used by the terrorist group for the process of financial crime. The introduction of Anti
money laundering helps in catching the criminals related to money laundering and economic
crime related to the money laundering. Most of the financial institutes and business
organization are using a software named Compliance, so that they are able to keep an eye on
their users. It can be stated that terrorist financing is a part of the money laundering however
the destination of both the process are different. With the development of the technology the
criminals are coming up with new techniques and tactics. In order to track the criminals the
concerned authorities are also trying their best in developing certain advance technology.
Government created certain agencies providing service to stop the process of money