Essay about The United States Law Enforcement and Money Laundering

1939 Words 8 Pages
Has one ever wondered how a criminal can enjoy his profits without being exposed? If a criminal wants to enjoy his money successfully, he knows he has to hide the true proceeding of his wealth. Since criminals began doing misdeeds for money, there have been ways to disguise the real origins of the profits. For example, the famous Al Capone was so careful hiding the true proceedings of his criminal activities that the police could only arrest him for tax evasion charges, now considered money laundering, too. It was not until the late 20th century that a formal term was imposed to this act. As time has passed and technology has improved so have money laundering techniques, but the United States law enforcement is battling money laundering …show more content…
There is not an exact version of where the term money laundering comes from, but there is a theory that affirms the term was first used and recognized internationally in the 1970’s, after the Watergate scandal, the scandal that led to the resignation of the president Nixon (Dr. Gholanhossein).
Money laundering involves three stages: placement, layering, and integration. In the first stage, 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, go to figure 1.

To complete every phase, money launderers use different techniques. To complete the first stage, placement, money launderers could use some techniques like bulk cash smuggling, financial institution complicity, and blending of funds. The first technique, cash smuggling, is one of the oldest and most used by money launderers especially in the drug field. In this technique, criminals transport large quantities of cash across border. For example, the US Department of Homeland and Security reports that “590 individuals have been arrested, far this year, trying to smuggle more than 59 million dollars”. The second technique, bank…