MONEY LAUNDERING & CORRUPTION

International Business Law

International Business Law

Introduction

The phenomenon of money laundering is not a complete novelty of crimes affecting the security of business transactions, on the contrary intensifies, and extends beyond the boundaries of individual states. Criminals operating in the white-collar use every opportunity that comes from above all the principle of free movement of capital and the globalization of international financial markets (Akyay, 2001). Therefore, the need to prevent money laundering, they realize the national legislature by placing the relevant provisions in their laws and trying to work out the optimal legal regulation and appropriate sanctions that are effective in combating this crime.

Money laundering poses a serious threat to the state and society, and at the same time is a challenging one. The danger is manifested not only in the fact that washed profits derived from criminal activity, but also in the fact that cleaned of property can be used to make another much more spectacular crime, as no country is not sufficiently protected against these practices.

Money laundering is usually related to the activities of organized criminal groups and is designed to conceal the illicit origin of funds by way of profits accruing to the legal circuit. Moreover, money laundering is not only the issue of crime and economic, but also the issue is related to the politics. Money laundering is isolated and typified in criminal statutes, and attempting on the accuracy and stability of the financial market. From the point of view of economics leads to an inefficient allocation of resources and the increased circulation. Money outside the country introduces instability in the macro economy and reduces investor confidence in financial markets, which has an influence on decision-makers and investors.

Discussion

Corruption has become a national issue, discussed, and debated on street corners, in homes, among friends, in the pages of newspapers, magazines, on radio, on TV, and on the Internet. The problem of corruption is not only limited to some parts of the world but it has become an issue in recent years worldwide.

Money laundering is clear source of illegal funds as there is no doubt that the phenomenon of money laundering is one of the most difficult to detect categories of crime in the sphere of finance and business. In the fall of any kind of operations undertaken for the legalization of unlawfully obtained funds. These measures are derived primarily from the various forms of organized crime of which the foreground and the so-called drug trafficking. Bound to a large extent is also obtained through transactions outside the legitimate sphere of action, and in particular the so-called other economic cycle. The source of this category, otherwise known as black money, is numerous tax and customs fraud, forgery and corruption spread. With the phrase laundry, which represents dirty money, one can conclude that the subject of such treatments is dirty means (Akyay, 2001).

Damages caused by Money Laundering & Corruption

For those who practice crimes, 'launder money' makes it possible to enjoy the profits ...