Professional Documents
Culture Documents
H.B Hamad
BBA-ZU
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Introduction
Money laundering is a kind of financial crime Financial crime is fraudulent activities Fraud always attract the negative side of the laws Fraud is the intentional misrepresentation of financial information by one or more individual among the employees or third parties. (i.e financial fraud)
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Introduction
Money laundering is very important business to criminal group (drag traffickers, terrorists) The term "money laundering" is said to originate from Mafia ownership of Laundromats in the United States. Gangsters there were earning huge sums in cash from extortion, prostitution, gambling and bootleg liquor. They needed to show a legitimate source for these monies. One of the ways in which they were able to do this was by purchasing outwardly legitimate businesses and to mix their illicit earnings with the legitimate earnings they received from these businesses.
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Introduction.
The two most significant areas of vulnerability to criminals, terrorists and terrorist organizations are communications and finance. These two areas consistently lead to the disruption and dismantlement of terrorist groups and activities. Although criminals and terrorists consistently change their methods of operations and demonstrate adaptability at avoiding detection, they must communicate, and raise and spend money to function.
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Definitions
Money Laundering refers to the conversion or "Laundering" of money which is illegally obtained, so as to make it appear to originate from a legitimate source. Money Laundering is being employed by launderers worldwide to conceal criminal activity associated with it such as drug / arms trafficking, terrorism and even white color staffs
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Definitions
Money laundering is the process by which criminals attempt to conceal the true origin and ownership of their criminal activities. If undertaken successfully, it also allows them to maintain control over those proceeds and ultimately to proved a legitimate cover for their source of funds. Their dirty money appear to be good ones
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Definitions
Money laundering, at its simplest, is the act of making money that comes from Source A look like it comes from Source B. In practice, criminals are trying to disguise the origins of money obtained through illegal activities so it looks like it was obtained from legal sources. Otherwise, they can't use the money because it would connect them to the criminal activity, and law-enforcement officials would seize it. The most common types of criminals who need to launder money are drug traffickers, embezzlers, corrupt politicians and public officials, mobsters, terrorists and con artists
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Other major issues facing the world's economies include errors in economic policy resulting from artificially inflated financial sectors. Massive influxes of dirty cash into particular areas of the economy that are desirable to money launderers create false demand, and officials act on this new demand by adjusting economic policy. When the laundering process reaches a certain point or if law-enforcement officials start to show interest, all of that money that will suddenly disappear without any predictable economic cause, and that financial sector falls apart.
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Customer Identification
This reemphasizes the adage "Know your Customer" (KYC). KYC requires that banks should make reasonable efforts to determine the customers true identity, and must introduce effective procedures for verifying the bonafides of new customers.
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2007 photo showing $207 million seized in Mexico ($205.6 was in US currency)
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money-laundering offences:
There are now five basic money-laundering offences: assisting another to retain the benefit of crime; acquiring, possession and use of criminal proceeds; concealing or transferring proceeds to avoid prosecution failure to disclose knowledge or suspicion of money laundering; tipping off.
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How to control
to strengthen international co-operation on information exchange and law enforcement; proper mechanisms for handling suspicious reports; a compliance culture among financial institutions; and to ensure that they put proper systems and procedures in place; to encourage financial supervisors to apply bank licensing procedures strictly, exchange information, and train practitioners; to increase public awareness of the threat from money laundering; increasing co-ordination between the multiple agencies (national and international) involved and to improve the limited intelligence sharing;
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How to control
to increase the limited human resources involved in the labour intensive and time consuming work of investigating suspected violations; implementation on a world-wide basis of a consistent set of policies. to focus on new technologies and increase countermeasures to combat their use for money laundering; to share forfeited proceeds with law enforcement agencies. (a particular police gripe); Introduce measures that make the movement of money more visible.
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SWIFT CODEs
The registrations of SWIFT Codes are handled by Society for Worldwide Interbank Financial Telecommunication (SWIFT) and their headquarters is located in La Hulpe, Belgium These codes are used when transferring money between banks, particularly for international wire transfers. Banks also used the codes for exchanging other messages between them
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SWIFT CODEs
The SWIFT code consists of 8 or 11 characters. When 8-digits code is given, it refers to the primary office.
First 4 characters - bank code (only letters) Next 2 characters - ISO 3166-1 alpha-2 country code (only letters) Next 2 characters - location code (letters and digits) (passive participant will have "1" in the second character) Last 3 characters - branch code, optional ('XXX' for primary office) (letters and digits)
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Unusual debt
Obtaining a mortgage on a relatively low income Obtaining a loan from unidentified parties
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