The Mafia's Money Laundering

988 WordsFeb 21, 20184 Pages
Money Laundering The term "money laundering" is said to create from Mafia possession of Laundromats in the United States. Gangsters there were earning huge sums in cash from extortion, prostitution, gambling and bootleg liquor. They needed to demonstrate a legitimate source for these monies. ‘Money laundering is the process by which criminals try to conceal the true origion and ownership of the proceeds of their criminal activity, allowing them to maintain control over the proceeds and, in the end, providing a legitimate cover for their sources of income’. In the 1980’s, money laundering was considered only as interest basically with drug trackling backgrund. It created trouble in western society, because the profit genration was increasing from criminal activities. Therefore, there was a force from society to take action against drug dealers by introducing legislation that would remove them of their illegal gains. Government soon identified that criminal organizations, which made massive profits from drugs, could corrupt the system of state at all levels. Money laundering is a worldwide trend, supported by international society which is a 24hrs a day business. If one closes, another opens for business. As a 1993 UN Report noted: The essential features of laundering of profits of crime are its global nature, the flexibility and adapbility of its operations. These make the crime in an organized manner. Moreover, a very important point which should not be ignored at any cost

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