Money Laundering Is Used By Drug Dealers, Terrorists And Other Corrupt Organizations

Organized crime continues to expand its destructive effect, and yet despite the vast effect it has some to very little consequences. In many cases the money and power resulting from organized crime is being used to infiltrate all over the state, from corrupted industries to

Mafia activity impacts the cities that it is involved in. The results of the activities of the Mafia partakes in can be positive or negative. Cities are mostly negatively impacted by organized crime. Even though there may be several arrests, they do not show the extent of the crime that is under the radar of the police and federal justice organizations. In a global context, the number of arrests or convictions for involvement in organized crime reflects police performance, rather than the extent of illegal activity (Van Dijk 40). “Criminologists describe organized crime as criminal activites for material benefit by groups that engage in extreme violence, corruption of public officials including law enforcement and judicial officers, penetration of the legitimate economy and interfering in the political process” (Van Dijk, Jan 40). High levels of crime can increase the risk of doing business in a country (Van Dijk 49). Infiltration in the economy and politics is a distinct characteristic of Mafia-type organizations. Racketeering is a problem in New York. Once the racketeering mobs are destroyed or defeated, the economy revitalizes (Van Dijk 50).

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

Organized crime can be narrowed down to five unique areas of criminal activity. The first being racketeering, an umbrella term, meant to describe when any group or groups conduct one or more of the other criminal activities. One of the most successful ways the federal government has been able to hinder the actions of hardcore criminals is through the formation of the RICO Act (Racketeer Influenced and Corrupt Organizations). The second area of major criminal activity is vice, or vice operations. This has to do with victim-less crimes such as drugs, gambling, and prostitution. Again, these crimes are highly problematic because it is the public that decides whether or not they prosper. It’s all too easy to build a case against someone breaking a law by importing huge quantities of controlled substances across a border, but it becomes much more difficult to stem the sale or need for such drugs once they have reached their intended destinations.

payments for them at a discounted rate. In another ploy, in order for Rothstein to recover the

Law enforcement agencies are being incentivized to pursue asset forfeiture because asset forfeiture destroys “the financial infrastructure of the criminal enterprise” (Lyman). Many criminals are motivated by greed and tend to purchase materials, such as weapons, drugs, cars, or real estates. Criminals are purchasing those materials with black money obtained through illicit criminal activities. Asset forfeiture is an effective law enforcement tool to reduce the incentive for illegal behavior (Lyman). Law enforcement use asset forfeiture by removing tools, equipment, cash flow, and profit to keep the criminal organization ability from operating successfully. Asset forfeiture is a process that results in “transfer of the ownership of property

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).

Organized crime is often committed by highly controlled criminal groups that participate in illegal activities for financial benefits. Indeed, organized crimes terrorize multiple facets of the American nation, which include the US’ economy as well as national security. The FBI assigns the costs of organized crime globally at one trillion dollars per year.

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.

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).

That is their criminal efforts, but the economic problem arises when the cartels must transfer the cash back to Mexico. The IRS requires that any deposit made over $10,000 has a bank receipt that goes along with the transaction (ICE). When cartels are depositing very large amounts of money, they must make inconspicuously, large amounts look believable. “Traffickers will send drug proceeds through various wire transfers to different accounts in different names in different countries, all the while varying the amount of their deposits and withdrawals to make the paper-trail harder to follow” (Woody).

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.

In this day and age, a corporation, family, or individual always has a potential risk of encountering fraud within their money supply. On average, fraud and abuse costs U.S. organizations more than $400 billion annually (Federal Bureau Investigation, 2010). Many may think that white collared crime is only money laundering or stealing, but that is only two out of the sum that countless culprits get away with. The term “white-collar crime,” originally coined in 1939 is synonymous with the full range of frauds committed by business and government professionals (Federal Bureau Investigation, 2010). These frauds include anything from bankruptcy fraud, money laundering, identity theft, corporate fraud to a wide number of threats all circling

The tendency to use technology, to avoid detection has been gaining fan following in the past few years as the physical world of money laundering began to erode. The means to launder money is limited to the ability and creativity of the launderers themselves. Increasingly nowadays, technology provides ever more avenues for criminals to launder money.