The Misuse Of Corporate Structures For Money Laundering

2234 WordsMay 12, 20169 Pages
Introduction Corporate Vehicles, including corporations, trusts, foundations, limited partnerships and limited liability partnerships, have performed miscellaneous business activities wildly in the global economies (The OECD Steering Group, 2016). Despite the important roles they are playing, the misuses of corporate structures for illicit purposes has drawn the public attention in recent years, including various forms of illicit behavior such as corruption, tax fraud and money laundering. Therefore, legislative and enforcement measures are necessary for fighting the misuse of corporate structures, also as a major obstacle to law enforcement’s ability to detect and investigate international financial crimes. This report will analyze this problem in two parts. The first part discusses the legal issues referring to the misuse of corporate structures for money laundering, they are: 1. How could the corporate structure be misused for money laundering? 2. Why is this kind of money laundering difficult to be found? 3. Why it will be difficult for the Financial Action Task Force (FATF) to detect the money laundering based on the misuse of corporate structure, respectively. The second part provides the solution to the misuse of corporate structures for money laundering, where disclosure and its improvement as a pillar contained within prevention, are viewed as an efficient method to limit money laundering. This part also gives a view of the limitations and conflicts of current
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