Banking Law Project : Money Laundering

card fraud. In reference to money Laundering we will the complex process of how criminals

Money Laundering is the act of placing illegally acquired money in a legitimate business cash flow. This is done in order to be able to use that currency without law enforcement and the IRS questioning cash flow pertaining to a certain individual or corporation in question. This also considered a form of

millions of dollars of structured settlements at a discounted price so that he could generate

When criminals reach this stage, it becomes arduous for investigators to distinguish if the funds are licit or not ( Grosse, 4 ). One of the most famous money laundering scandals in America was the Bank of New York money laundering scandal with Russia. In the summer of 1999, The Bank of New York found themselves in a predicament when they were found as suspects of an international money laundering scandal. The bank laundered billions of dollars to the Russian mafia and Russian politics. In august later that year, the New York Times published their calculations that the bank laundered nearly $14.2 billion dollars to $10 billion dollars that was laundered from Russia passed through the Bank of New York (Block, 3).

In order to successfully launder money three processes are needed: placement, layering, and integration. In the first state, placement, the illegal proceeding are disengaged from direct association with the crime or criminal. In the second stage, layering, the money is used in some legal financial transaction in order to “camouflage” the cash. In the third stage, integration, the apparently legal money is available to the money launder (Kelly, Maghan and Joseph). For better understanding, the fig 1 gives a real life example on how money laundering is done.

Madinger (2011) Argued that Civil asset forfeiture is the driving force behind money-laundering today is forfeiture.

Embezzlement may occur in many different circumstances. Sometimes, it can cost a person to lose millions of dollars to another individual or something as simple as a small, every day product. Embezzlement may be defined by “fraudulent conversion of another 's property or money by a person to whom it has been entrusted.” (4*) For example, if a waitress in a restaurant were to take your order, bring your food, and proceed to collect the payment without punching it into the computer. Instead she chooses to

When deemed appropriate, engaging in intricate financial manipulations accordingly, the perpetrators of organized crime may include corrupt business executives members of the professions, public offices, or

The approach has resulted in countless arrests and sentencing among other types of castigation against crime suspects, although it has provided no hope in curbing the rate of syndicate crimes. Nevertheless, a highly promising and effective alternative to policing involves enhancing awareness on syndicate crimes by emphasizing the main aspects of illegal entities, with exceptional focus on undermining the influence and affluence of illegal investors. This merging objective might be realized by vigilantly monitoring the leading upperworld entities that, when infiltrated, permits criminals to gain and apply ample affluence by espousing legal alternatives in disguise of proceeds and the illicit power (JRank, 2013).

46. This strategy by and large includes the utilization of genuine organizations with high money turnover, as fronts for lawbreakers to launder the returns of wrongdoing. The sorts of organizations utilized are by and large eateries, bars, correspondence focuses and different sorts of retail shops. The unregulated casual part likewise gives culprits the chance to procure little organizations, for example, second-hand auto dealerships, bars, eateries, gaming houses or land organizations, all of which give secrecy or chances to cover unlawful increases from their criminal birthplace.

enterprise by engaging in various criminal activities, including fraud, bribery and money laundering. Two generations of

Banks could become victim to kiting. Kiting can occur within a bank because criminals will open multiple accounts within multiple organizations in order to commit kiting. Banks also fall victim, as they do not detect kiting taking place until it is too late and the high dollar checks come back as nonsufficient funds.

In this kind of crime, there is also a term “embezzlement”, which means the fraudulent appropriation by one person, acting in a fiduciary capacity, of the money or property of another (Bus Law text book, p.

Wages of Crime: Black Markets, Illegal Finance, and the Underworld Economy is a book by R. T. Naylor based on his views of organized crime and the government’s stance and involvement. Naylor writes from a mostly democratic point of view and presents his thesis quite clearly. Naylor's thesis in this book is that organized crime is a convenient myth handed to society by the government. In this book Naylor sets up four important concepts: first on the black market operations of guerrilla groups, second on the modern arms market, then on money laundering, and finally the underworld trade in gold. Throughout the book he talks about the critique of the public perceptions of organized crime, a discussion of anti-money laundering policies, and an analysis of terrorist financing.

Embezzlement usually is a premeditated crime performed methodically, with the embezzler taking precautions to conceal his or her activities of the criminal conversion of the property of another person (Ponzi,2016), because the embezzlement is occurring without the knowledge