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Money laundering
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Money laundering is the process of concealing the source of large amounts of money that have been gained through illegitimate means. Money evidently gained through crime is "dirty" money, and money that has been "laundered" to appear as if it came from a legitimate source is "clean" money. Money can be laundered by many methods, which vary in complexity and sophistication.
Different countries may or may not treat tax evasion or payments in breach of international sanctions as money laundering. Some jurisdictions differentiate these for definition purposes, and others do not. Some jurisdictions define money laundering as obfuscating sources of money, either intentionally or by merely using financial systems or services that do not identify or track sources or destinations.
Other jurisdictions define money laundering to include money from activity that would have been a crime in that jurisdiction, even if it was legal where the actual conduct occurred. For example, under British law, spending proceeds from a bull fight in Spain constitutes money laundering because the bull fight would have been illegal if it had been conducted in the United Kingdom.[1] This broad brush of applying money laundering to incidental, extraterritorial or simply privacy-seeking behaviors has led some to label it financial thoughtcrime.[2]
Many regulatory and governmental authorities issue estimates each year for the amount of money laundered, either worldwide or within their national economy. In 1996, the International Monetary Fund estimated that two to five percent of the worldwide global economy involved laundered money. The Financial Action Task Force on Money Laundering (FATF), an intergovernmental body set up to combat money laundering, stated that, "Overall, it is absolutely impossible to produce a reliable estimate of the amount of money laundered and therefore the FATF does not
From Wikipedia, the free encyclopedia
Jump to: navigation, search
Money laundering is the process of concealing the source of large amounts of money that have been gained through illegitimate means. Money evidently gained through crime is "dirty" money, and money that has been "laundered" to appear as if it came from a legitimate source is "clean" money. Money can be laundered by many methods, which vary in complexity and sophistication.
Different countries may or may not treat tax evasion or payments in breach of international sanctions as money laundering. Some jurisdictions differentiate these for definition purposes, and others do not. Some jurisdictions define money laundering as obfuscating sources of money, either intentionally or by merely using financial systems or services that do not identify or track sources or destinations.
Other jurisdictions define money laundering to include money from activity that would have been a crime in that jurisdiction, even if it was legal where the actual conduct occurred. For example, under British law, spending proceeds from a bull fight in Spain constitutes money laundering because the bull fight would have been illegal if it had been conducted in the United Kingdom.[1] This broad brush of applying money laundering to incidental, extraterritorial or simply privacy-seeking behaviors has led some to label it financial thoughtcrime.[2]
Many regulatory and governmental authorities issue estimates each year for the amount of money laundered, either worldwide or within their national economy. In 1996, the International Monetary Fund estimated that two to five percent of the worldwide global economy involved laundered money. The Financial Action Task Force on Money Laundering (FATF), an intergovernmental body set up to combat money laundering, stated that, "Overall, it is absolutely impossible to produce a reliable estimate of the amount of money laundered and therefore the FATF does not
References: India[edit source] Main article: Prevention of Money Laundering Act, 2002 See also: Enforcement Directorate In 2002, the Parliament of India passed an act called the Prevention of Money Laundering Act, 2002