Nature and Causes of Global Money Laundering

8912 Words Jan 1st, 2010 36 Pages
NATURE AND CAUSES OF GLOBAL MONEY LAUNDERING

PRESENTED BY:

Kiran Aftab (Roll # 01) Afifa Naseer (Roll # 68) MBA-2004 4th Semester

INSTITUTE OF BUSINESS ADMINISTRATION
UNIVERSITY OF THE PUNJAB LAHORE

TABLE OF CONTENTS
Introduction 6
History 9
Money laundering and Globalization 13
Nature of Money laundering
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Money laundering is the processing of these criminal proceeds to disguise their illegal origin. This process is of critical importance, as it enables the criminal to enjoy these profits without jeopardizing their source.
Illegal arms sales, smuggling, and the activities of organized crime, including for example drug trafficking and prostitution rings, can generate huge sums. Embezzlement, insider trading, bribery and computer fraud schemes can also produce large profits and create the incentive to “legitimize” the ill-gotten gains through money laundering.
When a criminal activity generates substantial profits, the individual or group involved must find a way to control the funds without attracting attention to the underlying activity or the persons involved. Criminals do this by disguising the sources, changing the form, or moving the funds to a place where they are less likely to attract attention.
As money laundering is a necessary consequence of almost all profit generating crime, it can occur practically anywhere in the world. Generally, money launderers tend to seek out areas in which there is a low risk of detection due to weak or ineffective anti-money laundering programmes. Because the objective of money laundering is to get the illegal funds back to the individual who generated them, launderers usually prefer to move funds through areas with stable financial systems.

HISTORY
ACT OF MERCHANTS IN CHINA
It is very

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