WHAT IS MONEY LAUNDERING?
FROM A
DIFFERENT POINT OF VIEW by Monte Friesner
Financial Crime Consultant for WANTED SA
Saturday October 16, 2010
- Since being invited on board WANTED SA we have received many inquiries from corporations, banks and people wanting to understand? “WHAT IS MONEY LAUNDERING”?
- I was asked to write a series of articles to assist those wanting to understand and uncover Money Laundering in their corporations and banks by better understanding.
- Money Laundering is a Criminal Offense and punishable by long term of prison.
Definition of Money Laundering Article 2 of the “Model Regulations on Laundering Crimes” of The Inter-American Drug Abuse Control Commission (CICAD), states: The person who converts, transfers, obtains, possesses, uses, hides, covers, or prevents determining the real origin of assets, knowing that they are the product of criminal traffic or derived crimes, is guilty of the crime of money laundering.
The Financial Action Task Force on Money Laundering (FATF/GAFI) has published many articles with the following working definition of money laundering:
“The conversion, or transfer of property with the knowledge that the funds derive from a criminal act, with the purpose of hiding or disguising their illegal origin, or with the purpose of helping persons involved in the commission of a crime to evade the consequences of their actions.
2. Hiding disguising the real nature, source, location, disposition, movement, rights, or ownership of goods, knowing that they derive from a criminal offense.
3. The acquisition possession or use of goods knowing at the moment the goods are received that they derive from a criminal act or relate to a crime.”
The Financial Crimes Enforcement Network (FInCEN) of the U.S. Treasury Department defines money laundering as: “Disguising assets in order to use them so that the illegal activity that produced them cannot be detected.”
“Money Laundering in general, is the process of hiding or disguising the existence, legal source, movement, destination, or illegal use of goods, or funds which are product of illegal activities in order to make them appear legitimate.
In general, it involves the locating of the funds within the financial system, creating transactions to disguise the origin, ownership or location of the funds, and their integration into society with legal appearance."
The facts and opinions stated in this article are those of the author and not those of WANTED SA. WANTED SA does not warrant the accuracy of any facts and opinions stated in this article; does not endorse them, and accepts no responsibility for them.
Does your bank or corporation suspect the infiltration of money laundering; contact WANTED SA for a Complimentary Consultation and/or contact us for KYC or Due Diligence.
