Money Laundering--the Process :: essays research papers

MONEY LAUNDERINGTHE PROCESS AND ITS AFFECTS bills launder is a process that many people do not understand. In f spot, when I chose specie clean for my report, I thought that I chose counterfeiting. Money laundering and counterfeiting is not the same. Money laundering is the process by which thumping amounts of illegally obtained money (from drug trafficking, terrorist activity or new(prenominal) in effect(p) criminal offence) is given the appearance of having originated from a legitimate source. Money laundering is a complex operation that affects everyone. The purpose of this paper is to explain the money laundering process and how it affects society.Money laundering is not a single act but is more a complex operation that is completed in three basic steps. The graduation exercise step is placement, the second step is layering, and the trey step is integration.The first step, placement, is to take the moneys and place them into the financial system, the retail economy, or smuggle them out of the country. The aims of the launderer are to remove the cash from the location of achievement so as to avoid detection from the authorities and to then turn it into other asset forms for example travelers checks, postal orders, etc.The second step, layering, is the first attempt to conceal or disguise the source of the ownership of the property by creating complex layers of financial minutes designed to disguise the audit trail and provide anonymity. The purpose of layering is to disassociate the illegal moneys from the source of the crime by purposely creating a complex web of financial transactions aimed at concealing any audit trail as well(p) as the source and ownership of the funds.The third step, integration, is the stage at which the money is integrated into the legitimate economic and financial system and is assimilated with all other assets is the system.