Money laundering by Imad Feneir

Money Laundering

Money Laundering What is Money Laundering?

Effects on Economic Development

Anti-Money Laundering Efforts

Conclusion

What is Money Laundering ?

Definition: The process of disguising the proceeds of crime in a try to hide their illicit

origins and legitimize their future use .Objective: To conceal true ownership and origin of the proceeds, a desire to maintain control, a need to change the form of the proceeds.

Techniques: They can be simple, diverse, complex, accurate, but secret .

Stages of money laundering

1 -Predicate Crimes*Corruption and Bribery


1 -Predicate Crimes*Fraud


1 -Predicate Crimes*Organized crime

*Drug and human trafficking*Environmental crime


1 -Predicate Crimes*Terrorism

*Other serious crimes.


2 -Placement Moving and placing the funds into

financial institutions or the retail economy. *Banks

*Brokerage firms *Financial services

*Money transfer *Realtors


3 -Layering Multiple and sometimes complex financial

transactions are conducted to continue hide their illegal nature.

*Change of currency into different currencies. *Movements of money to different countries.


4 -Integration Illicit funds re-enter the economy disguised

as legitimate business earnings . *Securities *Businesses *Real estate *Investment


It will distort the economic data and complicate

government’s efforts to manage economic policy.

It will have adverse consequences for interest

and exchange rate volatility.

Reduce the annual GDP(Gross Domestic Product).

Distorts investment and depresses productivity.

Facilitates corruption and crime at the expense

of development.


Can increase the risk of macroeconomic

instability.

Criminal organizations can transform

productive enterprises into sterile

investments.

Outbound capital flows: facilitating

illicit capital flight.

Inbound capital flows: reducing foreign

investment.

Trade: distorting prices and content.

Anti-Money Laundering Efforts

Creating anti-money laundering regulatory and

enforcement organizations in countries and

regional groupings.

- Financial Action Task Force (FATF), UN,

Egmont Group

- Financial Crimes Enforcement Network (Fin

CEN)

- Office of Foreign Assets Control (OFAC)

- Bank Secrecy Act (BSA) and the USA

Patriot Act of 2001

Cooperation between national governments.

Conclusion Criminals are now benefit from the globalization of the world economy by transferring funds quickly across international borders.

Money laundering threatens economic development.

The international financial community should strongly support anti-laundering efforts, and cooperate to share information.

Developing countries should impose anti-laundering laws to improve the credibility not only its financial sector, but its governance as well.

Thank you for your attention

Money laundering by Imad Feneir

Business

Transcript of Money laundering by Imad Feneir