Wednesday, August 28, 2019

Final 3 Essay Example | Topics and Well Written Essays - 1250 words

Final 3 - Essay Example If successfully done, money laundering permits the criminals to have control over their incomes and lead to give a lawful cover up for income source. Money laundering plays a basic role in the goals of the terrorist, drug trafficker, the planned criminal, the tax evader, the inside dealer, also as many people who eschew the type of notice from establishment that abrupt wealth comes about from unlawful activities (Haggart, B., 2001). How is money laundered? There are various techniques of money laundering. The technique of prohibited money import is best when introductory traces are disappeared in the initial stage, finally leading to envoy or by the international transport gives physically the money to another country where rule of money market is not much developed or the legislation likes banking system. One good method of money laundering is nominal or smurfing partnership. In this technique, a group of couriers such as nominal partner or smurf keeps little amounts of deposits eac h day in different financial institutions. All the deposits are less than the amount which is less than the amount which asks for the attention of banks, value is less than the report limit. Money laundering- an international threat Money Laundering is seen as a personal improvement by few people, to the loss of many people. It draws up many resources from the public sector and also deterrent growth and investment. Money Laundering is the process via which the indignant suffer most (Haggart, B., 2001). According to IMF, the estimated global money laundering is approximately between $600 billion to $1.8 trillion per year. Former President Mobutu of Zaire stole approximately more than ten billion US dollars when he was in power. Nigeria also received help of around $1.1 billion for international development but Abacha stole almost $6 billion in his regime for himself and his family (Haggart, B., 2001). International Response to Money Laundering United States have been of the fore fron t in combating money laundering. The Bank Secrecy Act (BSA) which obliges the broad record reporting and keeping requirements on the financial institutions in an attempt to give the law enforcement agencies with records of financial obligations. The money laundering control Act of 1986 prevents the circumvention of the requirements set by BSA by which criminal liability is created for the individuals who carry out the transactions for money having any reason, or conducting the requirements of money knowingly, that the people concerned were involved in illegal activity (Gilmore, 1999). United Kingdom is also dedicated towards the Financial Action Task (FATF) which is concerned in taking actions against the money laundering. The recommendations on the terrorist financing comply with minimum international ways to safeguard against the illegitimate act of money laundering (Gilmore, 1999). Factors that have allowed Russian organized crime to flourish since the dissolution of the USSR The political and economic instability which followed the termination of Soviet Union in 1991 permitted a planned crime to merge all of its groups in Russia. The government held many huge enterprises and also role in formulating

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