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MONEY LAUNDERING
BY:-VIVEK SINGH RATHORE
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Money
BLACK MONEY
WHITE MONEY
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Money Laundering
Bill Gates
It means converting money gained by illegal acts such as drug trafficking and putting it into something that will show that the sum of money has been achieved legally.
willo'wisp
Money laundering is the practice of engaging in financial transactions in order to conceal the identity, source, and/or destination of money, and is a main operation of the underground economy.
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What is Money Laundering?
Nefarious activities of the criminals who
provide an envelope to “slush funds” in order to exhibit those as
genuine money.
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INVOLVEMENT
Involves bankers,lawyers,car dealers,real estates builders, accountants and also others, who allow their businesses to be used by someone to launder the proceeds of a crime.
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PLACEMENT •Layering
LAYERING •Placement
INTEGRATION •Integration
Money Laundering Process
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Placement
Getting Currency into the financial system so as to convert illicit funds from cash straight into a financial instrument or bank account
LayeringThe movement of funds from institution to institution to hide the source and ownership of the funds, obscure the audit trail and sever the link with the original crime
Integration
The reinvestment of those funds in an ostensibly legitimate business so that no suspicion of its origins remains and to give the appearance of legitimizing the proceeds
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Stages of money laundering
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PLACEMENT
LAYERING
INTEGRATION
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Effects:ML
Money Laundering Undermines Domestic CapitalFormation
Money Laundering Depresses Growth
Money Laundering Diverts Capital Away fromDevelopment
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The perpetrators: money laundering by criminal
sectorMoney Laundering by Activity
Terroristgroups
1% Drugs26%
OtherOrganized
Crime23%
Smuggling29%
Embezzle-ment/WhiteCollarCrime21%
Source: Celent
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Source: Celent
The victims: money laundering by industry sector
Money Laundering by Industry Sector
InsuranceFirms9%
CreditCards
5%
MoneyServices
4%Brokerage
&Investment
Firms27%
Banks55%
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Totally Funds Laundered Worldwide
$800
$900
$1,000
$1,100
$1,200
2004 2005 2006 2007 2008 2009
US$
billio
ns
Money Laundering by Region(Total = $950 billion in 2006)
Asia-Pacific31%
Americas38%
Europe26%
MiddleEast -Africa5%
Source: Celent
Funds Laundered.......
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AML-Meaning
Stoppage of illegal money generation
Laws,procedures,policies,etc. for money laundering activities
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Tighter AML regulation in the US and Europe is pushing money laundering activity into Asia Pacific…
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Money Spent:AML Programmes
AML Spending by Region - 2006
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
Asia Europe US
US
$m
illio
ns
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The state of AML…
Low
High
Industry AwarenessLow
Pro
gre
ss(I
mp
lem
enta
tio
n o
f sy
stem
s)
High
Australia
Hong Kong
JapanIndia
ChinaTaiwan
Malaysia
Singapore
South Korea
ThailandIndonesia
Philippines
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