Economic Crime, Money Laundering, Corruption

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MONEY LAUNDERING: AN ECONOMIC CRIME AND ITS IMPACT

MONEY LAUNDERING: AN ECONOMIC CRIME AND ITS IMPACT

Money Laundering has a close nexus with organized crime. Money Launderers accumulate enormous profits through drug trafficking, international frauds, arms dealing etc. Cash transactions are predominantly used for Money Laundering as they facilitate the concealment of the true ownership and origin of money. It is well recognized that through the huge profits the criminals earn from drug trafficking and other illegal means, by way of money laundering could contaminate and corrupt the structure of the State at all levels, this definitely leads to corruption. Further, this adds to constant pursuit of profits and the expansion into new areas of criminal activity. Through money laundering, organized crime diversifies its sources of income and enlarges its sphere of action. The social danger of money laundering consists in the consolidation of the economic power of criminal organizations, enabling them to penetrate the legitimate economy. In advanced societies, crime is increasingly economic in character. Criminal associations now tend to be organized like business enterprises and to follow the same tendencies as legitimate firms; specialization, growth, expansion in international markets and linkage with other enterprises. The holders of capital of illegal origin are prepared to bear considerable cost in order to legalize its use. The Process of Money Laundering (PLI)
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The Main Weaknesses of the Management System in the State Administration of Georgia as Supporting Factors for Corruption and Money Laundering

The Main Weaknesses of the Management System in the State Administration of Georgia as Supporting Factors for Corruption and Money Laundering

Public servants need both effective financial and moral incentives. Unfortu- nately, the average wages of public servants are below the minimum level of sub- sistence (Figure 6), and there are no social guarantees provided. The latter should be established without delay. If nothing is done, the normal functioning of public service, and addressing the facts connected to economic crime is impossible.

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A theory of organized crime, corruption and economic growth

A theory of organized crime, corruption and economic growth

It is not difficult to understand why criminal syndicates would want to lure public officials-law enforcers, in particular—into corruption. Doing so offers the prospect of greater opportunities to engage in illicit activities with less risk of detection and prosecution. Such activities (including drugs trafficking, money laundering and extor- tion) are likely to be more successful with the compliance of law enforcement officers who are willing to accept bribes in return for various favours (e.g., turning a blind eye against offences, providing information about police inquiries and falsifying reports about arrests). More generally, organized crime can foster corruption at all levels of public office by targeting different areas—the police, the judiciary and the political administration. 2 The general conclusion of most observers and practitioners is that organized crime flourishes most when the functioning of society’s public institutions is undermined by corruption. Evidence of this can be found in several empirical stud- ies covering various countries in different regions of the world and at different stages of socio-economic development: examples include Mazzitelli (2007) for West Africa, Sergi and Qerimi (2007) for South-East Europe, and Buscaglia and Van Dijk (2003) for a more global sample of territories.
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The Strengthening Authority Of Money Laundering Prosecution; A Review Of Corruption Eradication

The Strengthening Authority Of Money Laundering Prosecution; A Review Of Corruption Eradication

Black’s Law Dictionary explains that money launder-ing as: The act of transferring illegally obtained money through legitimate people or accounts so that its original source cannot be traced. It explains that this crime is an attempt to obscure the crime derived from illegal transactions. Such as drugs, corruption, terrorism and other illegal sources, and thus, the money laundering is rightful and entry into the legitimate channel, so that the original source cannot be traced. Money laundering, hereinafter referred to TPPU has been a particular concern by the international community. Former Managing Director of International Monetary Fund (IMF) Michael Camdessus had stated that the activities of money laundering in the world has reached 2 - 5% of gross revenues (PCB), or about US$ 600 billion. Money laundering is the third largest business in the world after financial and world oil markets. The crime of money laundering is not only domestic work but it has penetrated and through the boundaries of domestic jurisdiction of a country. It cannot be removed with the implementation of the international world economic liberalization that has implications not limitation of financial flows and transactions by the boundaries of the territory of a country. IMF’s statistics, criminal proceeds laundered through banks is estimated to nearly reach the value of $1.500 billion per year. Meanwhile, according to the Associated Press, the money laundering activities of drug trafficking, prostitution, corruption and other crimes mostly processed through the banking system to then be converted into legal funds and estimated this activity is able to absorb $600 billion per year. This means equal to 5% (five percent) of GDP worldwide. Money laundering has been done a long time and it is as done by the French nobility. In the seventeenth century they had brought their wealth to Switzerland. French party stated they bring funds escape from the nobles including traders then hid in Switzerland with the help of the Swiss, and therefore could be used safely. In the United State the money laundering known since 1936. At that time, the crime of money laundering derived from trafficking of firearms and narcotics crimes by mafia. To conceal or disguise their activities, carried out the purchase of the companies used as a place to hide money derived from crime. In its development, the money laundering is increasingly complex, across jurisdictional boundaries, and using mode increasingly varied, utilizing institutions outside the financial system, even has penetrated into various sectors and to anticipate that, FATF (Financial Action Task Force on Money Laundering) has ___________________________
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Money Laundering and Financial Means of Organized Crime: Some Preliminary Empirical Findings

Money Laundering and Financial Means of Organized Crime: Some Preliminary Empirical Findings

GDP of both exporting and importing countries and the distance between them. She applies this approach to the Walker model; i.e. using the modern gravity approach, in which the attractiveness to launder money depends among other factors on the bank secrecy in countries, the government attitude against corruption and crime, etc. She admits that this model needs a better micro foundation, but she clearly argues that the original Tinbergen’s ad-hoc formular was later on progressively micro-founded. Hence, Brigitte Unger provides a first theoretical basis of the Walker model, applies it and shows that she can reach plausible estimates of money laundering and organized crime 8 . Unger (Unger et al. (2006)) estimates the amount of money laundering in the Netherlands from 18 to 25 billion Euro (year 2004/05), which is approximately 5% of the Dutch GDP. The report of Unger et al. (2006) presents a list of 25 effects of money laundering on society, which are both positive and negative and have an effect in both the short and long term. This list includes effects on crime rates, economic growth, imports, exports, statistics, terrorism, the solvability and liquidity of the financial sector. Unger et al. come to the conclusion, after identifying all effects and reviewing the literature, that most literature on money laundering effects are pure speculation and furthermore, one source refers to the other sources, without much empirical solid backup.
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Money laundering as a form of economic criminality –  The case of the Republic of Kosovo

Money laundering as a form of economic criminality – The case of the Republic of Kosovo

Abstract– Economic criminality is a criminal activity that violates the economic and property values of the state, harms the public budget, and causes losses to economic entities, harms society in general. Combating and preventing this criminal activity that takes on transnational crime dimensions requires repressive legislation and international cooperation of sovereign states. Republic of Kosovo is assessed as a country that has largely expressed the phenomenon of economic criminality, in particular, money laundering, corruption, tax evasion, trafficking in human beings and as a transit country of drug trafficking. This paper addresses the legislation that prevents and fights the criminal offense of money laundering in the Republic of Kosovo. This paper addresses the legislation that prevents and fights the criminal offense of money laundering in the Republic of Kosovo. The paper also includes international instruments that regulate the fight against money laundering. The negative effects of the criminal offense of money laundering appear to be more pronounced in small countries and with non-consolidated democracies such as Kosovo. Kosovo's legislation has been continuously adapted to the conditions and circumstances by taking the pattern of EU legislation and international conventions of the UN system.
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Money Laundering Effects

Money Laundering Effects

Abstract. The globalization of economic activities and financial markets has had a very positive impact on the world economy. But this effect has also its costs. It can facilitate the ways by which money can be laundered internationally which is one of the biggest costs that this phenomenon creates. Among many analysts there is a discussion about the relationship that exists between globalization and money laundering, as well as economic implications of large-scale money laundering. Money laundering threatens the economic and financial systems in many countries, and has important effects on income distribution and macroeconomic variables. The negative effects of money laundering on economic development are difficult to measure, but it is obvious that such activity seriously damages the financial sector economy by diverting resources, encourages crime and corruption and distorts the trade indicators in the international sector. The main focus of this paper is the effect and impact that money laundering has in the agencies and institutional structures as well as the global financial consequences that brings this criminal activity.
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Terrorist Financing and Money Laundering

Terrorist Financing and Money Laundering

2001;  Bovenkerk  and Chakra  2004;  Ward  2004;  and  Napoleoni 2004).  Terrorist  groups are,  on  the  one  hand,  likely  to  resort  to  criminal  activity  to  obtain  financial  resources  when  they  are  not  successful in attracting  (or  when they  lose) domestic and/or  international support  for  their cause. 5   Such  isolated  groups  are  expected to  rely on  limited criminal  activity  to  obtain  financial resources  (e.g., robberies). For instance, a lack of popular support (and the loss of support from the Soviet bloc  with the end of the Cold War) may explain why Western European groups (e.g., the RAF in Germany)  often resorted to ordinary crimes to obtain financial resources (e.g., “revolutionary” bank robberies).  On the other hand, terrorist groups may resort to private financing by unlawful means when they are  able to  exert  some territorial control  (e.g., Bantekas 2003).  That is,  not only  small and  isolated but  also  large,  organized  groups  with  some  degree  of  public  support  may  rely  on  criminal  activity.  However, the latter  groups are  expected  to  rely  on means of  large‐scale (organized)  crime to  self‐ finance. For instance, territorial control allows for the production of drugs, drug trafficking and other  forms  of  smuggling.  Here,  social‐revolutionary  and  national  liberation  movements  such  as  the  Colombian FARC (Fuerzas Armadas Revolucionarias de Colombia), the Turkish PKK (Partiya Karkerên  Kurdistan)  or  the  Afghan  Taliban  have  been  argued  to  use  money  from  drug  production  and  trafficking to finance their  armed struggle. As we shall discuss below in more detail, the potentially  close  links  between  (political)  terrorism  and  criminal  activity  may  result  in  the  transformation  of  terrorist  groups,  where  groups  increasingly  give  up  their  politico‐military  causes  in  favor  of  purely  criminal behavior. For instance, the PIRA (Provisional Republican Army) is argued to be on the verge  of becoming a group where criminal activities (drug trafficking) are its main focus, whereas the FARC  seems to have already reached this stage (cf. Bovenkerk and Chakra 2004). 
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Anti-Money Laundering

Anti-Money Laundering

AML for Directors & Senior Managers 147B3R5.4 60 MIN. Gain a basic understanding of money-laundering, and see what a financial institution’s obligations are under the law to try to prevent money laundering. Also briefly explore the potential for software to assist with an institution’s anti-money laundering efforts.

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Accounting and Money Laundering

Accounting and Money Laundering

Although the basic technical skills acquired in the process of becoming expert hackers in different industries may be similar, the industry and context-specific skills vary among industries. Identity theft, crimes whereby someone wrongfully obtains and uses another person’s personal data in a way that involves deception, is another area of fraud where technological skills are industry specific. Identity theft includes, but are not limited to stolen payment cards, hacked bank accounts, and credit card fraud (Department of Treasury, 2015). Typical sales of stolen information and identity involved accounting technologies set up to transfer funds through money transmitters. The transfers have been structured to keep the dollar value below $3,000 which represents the federal record-keeping threshold (FTC, 2013). This organized network operates in two ways when transferring funds out of hacked accounts. One way is by employing intermediates known as “money mules” or persons who will perform a specified transaction process for a fee—usually a percentage of the dollar amount being transacted. The more popular of the two are “money mules” who receive the fraudulent funds and, after extracting the fee, forwards the rest of the funds using licensed money transmitters to the destination person, who may be located on another continent. In this process, the intermediaries do not have to be a permanent part of the criminal network and in fact may not even be aware that the transaction is a money laundering process (FBI, 2010).
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An empirical analysis of organized crime, corruption and economic growth

An empirical analysis of organized crime, corruption and economic growth

Whilst the foregoing research has yielded valuable insights on the links between corruption and organized crime, there is still considerable room for further investi- gation. A particularly fertile area, which so far has gone undetected, is the extent to which this link may have an influence on overall economic performance. An attempt in this direction has been made by Blackburn et al. (2017) in a companion study (henceforth BNR), who took a step beyond the partial equilibrium analysis of individ- ual decision making towards the relatively unexplored general equilibrium analysis of aggregate growth outcomes. In a series of overlapping generations endogenous growth models, BNR study the interactions between organized crime and corruption, together with the individual and combined effects of these phenomena on economic growth. In this environment, a criminal organization co-exists with law-abiding pro- ductive agents and potentially corrupt law enforcers. The crime syndicate obstructs the economic activities of agents through extortion, and may pay bribes to law enforcers in return for their compliance in this. The first finding of the analysis is that the presence of organized crime on its own reduces economic performance by deterring agents from engaging in growth-promoting ventures. The second finding, and the main contribution of the study, is that this effect may be either exacerbated or mit- igated by the coexistence of both organized crime and corruption. In other words, the analysis gives rise to an ambiguity of the comparative static over the equilibrium growth rate with crime as compared to the growth rate with both crime and corrup- tion.
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Anti-Money Laundering and Anti-Bribery and Corruption Systems and Controls: Asset Management and Platform Firms

Anti-Money Laundering and Anti-Bribery and Corruption Systems and Controls: Asset Management and Platform Firms

At most firms, we found either very limited or irregularly documented evidence of senior management challenge during formal management and governance committee meetings. This was evident from relevant meeting minutes. In some firms, there was also a lack of rigour in following up on formal actions and issues raised. We identified examples of recurring issues being reported to management committees, with no clear ownership for the closure and resolution of those issues, leading to a ‘reactive’ approach in managing money laundering and bribery and corruption risks. Some firms’ senior management could not clearly articulate their money laundering and bribery and corruption risk management arrangements.
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A world fit for money laundering: The Atlantic alliance’s undermining of organized crime control

A world fit for money laundering: The Atlantic alliance’s undermining of organized crime control

Within the policy making process, the framing of “public goods and public evils has ramifications for laws, legislation, and funding that affects individuals on the ground” (Ceresola 2019:52). This is the first known paper, using primary source correspondence data, to detail the reasons why US devised policies concerning money laundering controls in the 1970s and 1980s, were not initially acceptable to the UK and how compromises between both countries were engineered to deliver a palatable AML system, still in use today and protecting the richest countries. In the course of researching for this paper, the authors have uncovered that the framing of money laundering by the US in the 1970s and 1980s had numerous ramifications, including adopting the war on drugs as a political veil to justify targeting foreign tax havens as conduits of organized crime and money laundering. This tactic was also favoured by the UK which wanted to retain its wealthy tax haven territories with their secrecy laws, but also wished to be seen to be doing something about the war on drugs. Ultimately, the handy shield of the international war on drugs and dirty money, led to the creation of AML-focused bodies that rarely challenged the interests of those nations who were complicit in the establishment and maintenance of secrecy havens, and in so doing, elevated the role of bankers to criminal law policy makers while minimising the role of international law enforcement bodies such as Interpol. As will be shown, the ramifica- tions discussed below, are relevant today because in the context of organized crime control at the wider level, the UK and US are still operating with the same assumptions and policies in the twenty-first Century.
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Corruption and Money Laundering: What s the Connection? Sal Jadavji, ERM Officer and CAMLO

Corruption and Money Laundering: What s the Connection? Sal Jadavji, ERM Officer and CAMLO

• The G20 Leaders statement, Pittsburgh, September 2009: “We ask the FATF to help detect and deter the proceeds of corruption by prioritizing work to strengthen standards on customer due diligence, beneficial ownership and transparency”. d. OECD Convention on Combating Bribery of Foreign Public Officials

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Combating. Money Laundering. Latvia

Combating. Money Laundering. Latvia

The Latvian FIU receives, registers, processes, compiles, stores, analyzes information on unusual and suspicious transactions and provides this information to pre-trial investigative authorities and the court. Such information may only be utilized for the prevention, detection, pre-trial investigation or adjudication of activities linked to laundering or attempted laundering of criminal proceeds and terrorist financing or the respective predicate crime. The information is deemed confidential and it is protected by the law. Its release is subject to strict regulations. To encourage reporting, an exemption from legal liability applies to the persons that reported unusual or suspicious transactions to the FIU (reporting entities). Failure to report unusual or suspicious transactions can lead to the administrative and/or criminal sanctions.
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ANTI - MONEY LAUNDERING POLICY

ANTI - MONEY LAUNDERING POLICY

(b) receiving, possessing, concealing, disposing of, bringing into or removing from the United Republic of Tanzania any money or other property which is the proceeds of crime; while knowing or ought to know or to, have known that the money or other property is or was derived or realized, directly or indirectly, from some form of unlawful activity;

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Anti-Money Laundering Manual

Anti-Money Laundering Manual

Empire Trading Ltd (“Empire Trading”, “we”, “us” or “the Company”) is owned by Techsync Management Consultancies LLC, which is a Company duly registered and incorporated in Dubai under the registration number 100561717800003, authorised and regulated by the United Arab Quwain Authority (UAQ) with licence number 1861, registered offices in Al Shmookh Building, P.O. Box 7073, Dubai - United Arab Emirates and in London, 7 Bell Yard, WC2A 2JR - United Kingdom.The Company also aims to comply with anti-money laundering (“AML”) and counter-terrorism financing (“CTF”) recommendations in a way that complements business priorities.
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ANTI MONEY LAUNDERING POLICY

ANTI MONEY LAUNDERING POLICY

1. Money laundering is where money obtained, as a result of a crime, is used to pay for services or goods. Although the term ‘money laundering’ is usually associated with organised criminal activities, it can include a suspicion that someone you know, or know of, is benefiting financially from dishonest activities, e.g. non-payment of income tax.

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Combating money laundering on the blockchain

Combating money laundering on the blockchain

Smilo collaborates with several companies. Smilo wants to keep their profile clean and they do not want to be associated with money laundering practices. Therefore, they want to secure that they can identify criminal activities on their blockchain. The reality is that only big transactions can be noted as a potential criminal transaction now, although there is no system that keeps track of these high transactions. Only by ‘accident’ those large transactions can be noted. It can be said that there is a big discrepancy between norm and reality. The problem owner is the CEO of Smilo. He has to make sure that the company maintains a good image. When supervising instances (e.g. DNB) identify that Smilo’s blockchain may be used for criminal activities like money laundering, it will hurt the
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The Money Laundering Prevention System

The Money Laundering Prevention System

Furthermore, it is necessary to stipulate that reporting entities and all other bodies in- volved in the process should keep comprehensive records and statistics. This should con- tain statistics on suspicious transaction reports (STR) received and forwarded, activities which follow up on such reports and especially the number of investigations, prosecutions and convictions for incidences of money laundering or terrorist financing, data about fro- zen, seized and confiscated property and on mutual legal assistance or other international requests for the cooperation. 21

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