Money Laundering
MONEY LAUNDERING IN THE BANKING SECTOR
TABLE OF CONTENS 1. | MONEY LAUNDERING – the concept An organized crime Why it is done?? | 2. | Stages and Process Of Money Laundering | 3. | Vulnerability of the Financial System to Money Laundering | 4. | Banking Sector: Medium, Regulator And Cause | 5. | Private Banking And Money Laundering: | 6. | What Banks Should Do? | 7. | Indian Law For Prevention Of Money Laundering | 8. | Law Enforcement Authorities | 9. | Tax Havens And Money Laundering | 10. | Case Studies | 11. | Conclusion | 12. | References |
MONEY LAUNDERING – THE CONCEPT:
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 extortion.
Robinson states that
“Money laundering is called what it is because that perfectly describes what takes place – illegal, or dirty, money is put through a cycle of transactions, or washed, so that it comes out the other end as legal, or cleans money. In other words, the source of illegally obtained funds is obscured through a succession of transfers and deals in order that those same funds can eventually be made to appear as legitimate income.”
Article 1 of EC Directive defines the term ‘money laundering’ as
“the conversion of property, knowing that such property is derived from serious crime, for the purpose of concealing or disguising the illicit origin of the property or of assisting any person who is involved in the committing such an offence or offences to evade the legal consequences of his action, and the concealment or disguise of the true nature, source,
TABLE OF CONTENS 1. | MONEY LAUNDERING – the concept An organized crime Why it is done?? | 2. | Stages and Process Of Money Laundering | 3. | Vulnerability of the Financial System to Money Laundering | 4. | Banking Sector: Medium, Regulator And Cause | 5. | Private Banking And Money Laundering: | 6. | What Banks Should Do? | 7. | Indian Law For Prevention Of Money Laundering | 8. | Law Enforcement Authorities | 9. | Tax Havens And Money Laundering | 10. | Case Studies | 11. | Conclusion | 12. | References |
MONEY LAUNDERING – THE CONCEPT:
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 extortion.
Robinson states that
“Money laundering is called what it is because that perfectly describes what takes place – illegal, or dirty, money is put through a cycle of transactions, or washed, so that it comes out the other end as legal, or cleans money. In other words, the source of illegally obtained funds is obscured through a succession of transfers and deals in order that those same funds can eventually be made to appear as legitimate income.”
Article 1 of EC Directive defines the term ‘money laundering’ as
“the conversion of property, knowing that such property is derived from serious crime, for the purpose of concealing or disguising the illicit origin of the property or of assisting any person who is involved in the committing such an offence or offences to evade the legal consequences of his action, and the concealment or disguise of the true nature, source,