Money Laundering: The Revolutionary Armed Forces Of Colombia

Money laundering is when illegal gains are made into profits legally. The process of money laundering has three steps and they are placement, layering, and integration. Placement is where criminal money is put in the financial system. An example of this is showing money as a profit. Layering is the second process of money laundering and this is where one repeatedly launders the money the hide where it came from. Lastly, is integration. This is where people present illegal money in the economic system as if it were legally obtained monetary. It is hard to trace laundered money when people use informal transfers and/or underground networks.

An example of a successful money laundering method is The Revolutionary Armed Forces of Colombia (FARC)

Terrorist frequently use economic crimes to gain money. Some examples are: robberies, theft, selling drugs, etc. They may get money illegally, they also get it legally through charities, donations, etc. Hamed Tofangsaz believes there are three types of financing that terrorists use. These three methods are acquiring funds, securing funds, and disbursing funds. When it comes to obtaining money, terrorist fund-raise. They have to be able to maintain and keep their resources financially. Finally, they have to distribute their resources so every terror cell receives them. Victor Dostov and Pavel Shust also suggests that terrorist can also get support legitimately by rental points, airline miles, and other bonuses. These bonuses can be used to help finance their

This group has a variety of sources when it comes to funding themselves. They use laundering systems and underground networks to move their money. Iran is their most important sponsor along with other state funding. Hezbollah makes roughly $200 million yearly just from Iran. Front organizations and charities also help fund these terrorists. This organization also depends on criminal activities in places like Lebanon. An example of this is extensive protection racket. This is where business have to pay a "Hezbollah tax" to guarantee that none of their personnel or property gets damaged. This group also expands to narcotics trafficking and smuggling cigarettes in Africa and North America. Hezbollah is so multiplexed that it even control business that are legitimate along with controlling international wire services. With vast reach, they have money coming in from everywhere and this allows them to fund organizations like the Palestinian Islamic Jihad and