Money Laundering

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What is Money Laundering? Money laundering is when funds from criminal activity are converted into “clean money” and cannot be traced back to the criminal activity. The goal is to conceal the criminal activity and the criminals involved. One of the main reasons people commit criminal acts is to make money off of it. Money laundering allows criminals to enjoy these illegal proceeds without law enforcement noticing. Money laundering can be used in drug trafficking, terrorism financing, or tax evasion. Obviously selling drugs is illegal. The drug industry is known to turn out a pretty hefty profit. Drug traffickers will launder money to hide their illegal drug sales. The United States is always looking at ways to prevent terrorism. Terrorists launder money, so law enforcement cannot detect where their funding has come from. Some people may launder money as a way to evade taxes. They do not want to pay taxes on their income so they hide this money by laundering it, so they do not have to report it. The Money-Laundering Process Money laundering can sometimes involve multiple steps to conceal where these illegal funds came from. One of the steps is placement of the money. The goal is to deposit the funds into a bank account without drawing attention to it (Cliff and Desilets 2). It is likely the deposits will be structured, meaning multiple small deposits, possibly into several accounts at several banks. At this point the money can be switched to trade goods or even converted into other currencies. A lot of times the cash or trade goods are transferred away from the country the crime was committed (Cliff and Desilets 2). Layering is the second step in the money laundering process. In this step the funds are moved multiple times to... ... middle of paper ... ...te Collar Crime Center. (2013). Web. 27 February 2014. “Money Laundering.” Financial Action Task Force. Web. 25 February 2014. “Consequences of Money Laundering.” Financial Intelligence Unit. Web. 10 March 2014. Petras, James. “US Bank Money Laundering- Enormous by any Measure.” Web. 13 March 2014. “Statistical Data- Money Laundering and Bank Secrecy Act (BSA).” IRS. (23 October 2013). Web. 15 February 2014. “Examples of Money Laundering Investigations- Fiscal Year 2013.” IRS. (4 November 2013). Web. 5 March 2014. Layton, Julia. “How Money Laundering Works.” How Stuff Works. Web. 11 March 2014. “History of Anti-Money Laundering Laws.” Financial Crimes Enforcement Network. Web 12 March 2014. “The IMF and the Fight Against Money Laundering and the Financing of Terrorism.” International Money Fund. (30 September 2013). Web 14 March 2014.

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