MONEY LAUNDERING

Money Laundering

Table of Contents

A. UNDERSTANDING THE PROCESS OF MONEY LAUNDERING3

a: Introduction3

b.Definition of Money Laundering4

c.History of Money Laundering5

d.Role of Money Laundering7

e.The Modern Laundry Cycle9

f.Money Laundering is a Criminal Business12

g.Conclusion27

B.MOTIVATIONS FOR GETTING INVOLVED27

a.Introduction27

iv.Fraud Schemes37

v.Corruption38

b.Home Based Money Launderers40

c.Professional Money Launderers45

d.Conclusion52

C.MECHANISMS FOR MOVING MONEY52

a.Introduction52

b.Doing Business in Cash53

c.Hiding in Plain Sight54

d.Creating Financial Cover58

f.Conclusion80

D.GOING GLOBAL83

a.Introduction83

b.Jurisdiction for Fun and Profit84

c.Competition for Illicit Funds98

d.Selecting Offshore Locations103

e.Conclusion107

E.TECHNOLOGY AND TOMORROW108

a.Introduction108

b.The Role of the Internet110

c.Electronic Currencies114

d.Online Access and Movement119

e.Detection Prevention120

f.Seeing the possibilities123

g.Conclusion126

F.CONTROLS AND PREVENTION128

a.Introduction128

b.Understanding infiltration130

c.Passive Prevention133

d.Active Prevention137

e.Conclusion144

G.DETERRENCE AND DETECTION148

a.Introduction148

b.Projecting Defense150

c.Publicizing Response157

d.Anticipating Intrusion159

e.Seeking Opportunity161

f.Evolving Tests162

g.Conclusion164

H.IDENTIFYING RISK EXPOSURES165

a.Introduction165

b.Cash Infusion166

c.Cash Substitution173

d.Conclusion180

H.INVESTIGATING MONEY MOVEMENT180

a.Introduction180

b.Identifying Suspicious Transactions181

c.Validating Supporting Information183

d.Mirage or Oasis190

e.Interviewing for Information193

f.Alternative Methods of Proof195

g.Conclusion197

J.REPORTING AND RECOVERY200

a.Introduction200

b.Working With Law Enforcement/Prosecution201

c.Preparing Reports207

d.Restitution, Recovery and Forfeiture216

REFERENCES224

Money Laundering

A. Understanding the process of money laundering

a: Introduction

In money laundering, the progress of evil deeds through the economic plan is to disguise their illegal origin, so that they appear legitimate funds. The most commonly affiliated with the coordination of misconduct, money laundering can be connected to any inappropriate behavior, development, such as extortion, trafficking in drugs, arms smuggling, as well as important progress in white-collar crime. While engaged in money laundering transactions often a puzzling sequence, which usually consists of three basic steps.

The first step is cash, personal selling. This position may be made for the cost of the bank or family, money and gradually prescribed or recreational, and other economic institutions. Or, money may be shipped to the foreign economic organizations in the limits of deposit, or used to buy works of art, for example, aircraft, high-value items, as well as precious metal and pebbles, and then you can determine the resale or bank transfer fee.

The second step in money laundering is well-known layered, bearing out the progress from the source of illicit different economic levels and disguised transactions review confusing clues. This stage can move in the cable down costs money to make these transactions, the currency unit down to a change made costs money (bonds, supplies, traveler's checks), high-value items and currency equipment resale, the purchase of real block and legitimate businesses, particularly in the leisure and tourism industries. Shell companies, usually listed in the coastal paradise is layered phase in a wide range of devices. These enterprises, often depicting the localization of its controller as a candidate attorney, through the vague limit bank secrecy and the beneficial owner of attorney-client privilege.

The final step is the wealth derived from illicit progress appears legitimate. This integration may be in any number of ways, for example, using front companies to "borrow" the foreign economic organization of the deposits as loan guarantees the progress of the family back to the proprietor or the use of capital. Another common approach is to over-invoicing of goods made or sold false invoices - or suspected of selling - across national borders.

b.Definition of Money Laundering

Money laundering is carried out is not a lonely, but in the details of an ongoing three basic steps of the method. These steps can be taken during the transaction the same as a lonely time, but they can ...