Money laundering rewards corruption and crime and damages the integrity of the society and undermines democracy and the rule of law (Hopton, 2009). There have been many anti money laundering assessments implemented to try to prevent the act of money laundering. One of the first ways was to put into action some legal acts that would enforce the financial businesses and banks to cooperate with the crime by reporting things that became suspicious. That is when the Bank Secrecy Act was passed. This was meant for all managers and employees to report any type of activities that they felt were not normal.
A check is defined as a written order on a bank or banker payable on demand to the person named or his order or bearer and drawn by virtue of credits due the drawer from the bank created by money deposited with the bank. (Mallor, Barnes, Bowers & Langvardt, 2013) With that definition, we can conclude that check fraud is the reproducing of legitimate account information by printing false checks or altering original checks by using chemicals. Business and financial institutions alike avoid falling victim to this white collar crime, which remains one of the biggest challenges for them. There are many different types of check fraud, which we will discuss however; we will go into depth on only one. There are five different types of check fraud that can occur: check kitting, paper hanging, forgery, counterfeiting and alteration.
Some of those frauds include Enron, WorldCom, Cendant, Adelphia, Parmalat, Royal Ahold, Vivendi, and SK Global. In most cases, the auditors were alleged to be the cause since it’s their responsibility to detect the fraud. Thus they were sued by stockholders for performing negligent audits. With the persisting issue of fraud in the discipline of accounting, a solution must be established. The government has stepped in and put in place regulations and laws that are meant to eliminate accounting fraud.
Money laundering can be executed through several ways that include structuring and round tripping among the primary ones. In the method of structuring, money is broken into several small deposits that reduce the chances of any suspicion from various law enforcement agencies. In relation to the method of round tripping, money distorts the market, further lessening the chances for law enforcers to detect the money (UNODC, 2013;  Legal Information Institute, n.d.). In terms of law, money laundering is considered as a crime and penalty is thus imposed on people involved in laundering money. E.g.
Forensic accounting in the general sense is an accountant who is hired to look into possible white collar activities in a company, or to prevent the crimes from occurring. A white collar crime is a nonviolent crime that is motivated by money and is against either a large company or the government. These crimes often are committed by workers who are at a higher status than what would be considered given the opportunity for more possible passwords and special intelligence not shared with the general workforce. Some common crimes that are perpetrated include embezzlement, fraud, bribery, and identity fraud. These crimes are not only more complex to complete but are also more destructive to the company than some crimes, such as shoplifting or graffiti.
Next, diverting cash which is the employee controlling funds that received from customers which deposited into bank account. Stealing goods or services can be said the employee creates controlled by them another billing system, acquire a client, provides a service, and invoices in the name of a similarly named company. ("Corporate Wrongdoing", 2010) Corporate wrongdoing do not just entail direct stealing from a company. There are also involving activities such as decisions action by directors or employees that are in their own best interest rather than the companies. For an example, designating a contractor that gave the employee a nice holiday rather than on the basis of fitness for the job.
Fraud is a problem faced by society today. For years people have been misrepresenting themselves and their companies to unsuspecting victims who falls prey to their schemes. There are many different types of fraud one can participate in including management fraud, vendor fraud, employee embezzlement, investment scams and other consumer frauds. In this case study money laundering will be the highlight of this entire case. Money laundering can be defined as the process by which one conceals the existence, illegal source, or illegal application of income, and disguises that income to make it appear legitimate.
Refund fraud cheats the whole community and disadvantages those who do the right thing. We take it very seriously, and there have been a range of controls and systems in place to detect potential refund fraud, including: • analytical models that use behavioral and statistical algorithms to analyze information on income tax returns, business activity statements and other tax forms • sharing data and intelligence with our partner agencies • Obtaining information about suspected fraud from the community and other government
Money laundering, as the name suggests, is the act of making unreported or money or income appear as if the money has been earned through legal acquisition. It could take just one transaction or several processes, depending on the amount and the origin of the money, for the money to be complete laundered. In its simplest forms, people with huge sums of money earned by illegal means can walk up to a bank and deposit their money. However, this method easily raises suspicion in most countries. The United States have implemented laws that made it more difficult to utilize banks for money laundering.
However there are people in today’s society who take advantage of the SNAP system and commit fraud. “SNAP fraud is when SNAP benefits are exchanged for cash” (Fraud). This is illegal because when people trade in their benefits for money then they can buy anything they would like. Fraud is defeating the original purpose of food stamps which is simply being able to purchase food. Fraud is not only committed when people receive cash back but also when people lie about how much money they receive each month.