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Just What Is Money Laundering?

JUST WHAT IS MONEY LAUNDERING? Money laundering happens on DID YOU KNOW? A DAILY BASISad all around It happens so often that hundreds of billions of dollars are LAUNDERED through financial institutions each year. Money laundering involves highly illegal activities in which criminals use financial transactions to disguise the original ownership of the money, by making it look as if it's coming from a LEGITIMATE SOURCE BANKS + LAW ENFORCEMENT become suspicious if people are continuously depositing large amounts of cash. The transactions need to LOOK LEGITIMATE, otherwise law enforcement will track the money and seize it, not to mention connect those involved to illegal activity and put them in jail. WAYS TO LAUNDER MONEY: METHOD1 PESO EXCHANGE PPP BLACK MARKET COLOMBIAN Drug money is turned into pesos The pesos are then used to pay for goods The goods are resold in exchange for $$SSS FACT IT'S THE LARGEST DRUG MONEY LAUNDERING MECHANISM IN THE WESTERN HEMISPHERE. METHOD 2 DEPOSITS STRUCTURING Large amounts Broken up into smaller amounts deposited into various banks over time. below 10,000 In the United States cash bank deposits need to be below $10,000. Otherwise, banks are required to report it to the government. OVERSEAS The underground alternative banking system METHOD 3 BANKS t A A ît û Û Û Î Û Î This method involves sending the illegal money to offshore accounts in countries that have bank secrecy laws, which means they allow anonymous banking. MAJOR OFFSHORE CENTERS Bahrain Bahamas *A Cayman Islands Hong Kong * Panama Singapore There are banks in ASIA which offer COUNTRIES THAT DO THIS INCLUDE legal, alternative banking systems that allow customers to deposit, withdraw and transfer money without providing PAKİSTAN INDIA CHINA documentation. This leaves no paper trail for the authorities to trace. METHOD 4 SHELL COMPANIES These companies exist solely to launder money. Fake companies make cash deposits into banks. The cash is withdrawn ATM INVEST IN LEGITIMATE BUSINESSES Fake invoices & balance sheets Started by criminals solely to help clean their money, but can also be legitimate businesses that launderers “invest" in, such as brokerage firms, casinos, bars, or strip clubs. All of these businesses deal with a lot of ca$h and help the illegal money blend in. LAUNDERING PROCESS 1 PLACEMENT Criminal puts the This is in the form DIRTY MONEY of cash bank deposits. into legitimate financial institution. SOLD 2 LAYERING wire transfers between changing the money's currency, and purchasing Sending money through financial transactions to different accounts HIGH VALUE ITEMS change its form to change the form of the money. 3 INTEGRATION The final stage, where the laundered money is re-introduced into the economy as legitimate. It may involve a into a LOCAL BUSINESS in FINAL BANK TRANSFER which the launderer is investing; or the sale of something valuable bought during the layering stage. TYPES OF CRIMINALS. WHO LAUNDER MONEY: 6'0" 6'0" 5'6" 5'6" 5'0" 5'0" 4'6" - 4'6" DRUG TRAFFICKER CORRUPT POLITICIAN PUBLIC OFFICIAL CON ARTIST MOBSTER TERRORIST -4'0" 4'0" EMBEZZLER 3'6" 3'6" 3'0" 3'0" WHY LAUNDER MONEY? THI Criminals don't want to leave Terrorists and the mafia Money needs to appear a trail and don't want to don't care about being brought in on charges of money laundering. CLEAN GET CAUGHT Once law enforcement and looks into their backgrounds, INVESTIGATES TI EM further CRIMINAL activities are discovered. FIGHTING MONEY LAUNDERING: 2. PRIMARY METHODS used by the government to detect and fight money laundering: legislation and law. 1 THE BANK SECRECY ACT 25 1994 MONEY LAUNDERING SUPPRESSION ACT ŞOME REAL EXAMPLES OF MONEY LAUNDẾRING: Panama Late 1980s Franklin Jurado, an economist, laundered money for the Colombian Drug Lord Jurado deposited cash from U.S. drug sales into JOSE SANTACRUZ-LONDONO. PANAMA BANK ACCOUNTS Colombia Then transferred the money to more than The money was then 100 BANKS throughout Europe, SENT TO COLOMBIA, always in transactions under where Santacruz-Londono would $10,000 OO use it to fund his businesses. Jurado laundered more than $36 MILLION before he was caught and sentenced to 72 YEARS IN JAIL. CONCLUSION: Money laundering is hard to control because money launderers can use financial institutions in any country they choose. It is a serious problem that calls for worldwide efforts, yet most countries have bank secrecy rules. This makes it hard for the U.S. government to track money once it's been transferred overseas. (visual ly SOURCES: International Compliance Association, U.S. Department of Treasury,,

Just What Is Money Laundering?

shared by visually on May 09
Did you know that money laundering happens on a daily basis all around the world?




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