Why Is Money Laundering Important In The UK?

The First Security Bank (FSB) of Malta, Montana fall victim to a crime of credit card fraud, money laundering, and embezzlement. The crime stared a small city in Montano with a couple thousand, who was startled from the crime. The vice president of operation of the bank was a pillar of the community and the suspect of the bank’s crime. The scheme was committed over a long period of time. This crime weakens the foundation of the bank and possible may run it out of business. The committee was in a frenzy with the bank and the suspect about spending the community’s money. The shareholders gave the president “30 days to clean up the bank or pawn the bank off to another financial institution.” (Volz p.1) However, the bank pulls through the crisis and gains more customer as the business begins the recover period.

The guardian also indicates that due to economic recession, white collar crime has been pushed to new levels with high rates of fraud continuing to dominate the second half of 2009 (Allen, 2009). This example by the Guardian is just a tip of the iceberg that pinpoints the fact that white collar crime has continued to escalate not only in the United Kingdom but also across the globe. Unfortunately, this type of crime has not received the attention and the intervention it deserves as other crimes continue to be given a priority in curbing them.

dominating the drug industry are the Latin American and majority of Asian, specifically cocaine and heroin production. Global organised crime is evolving and embracing new markets and technologies; moving from the traditional hierarchies towards a more flexible, network based construct of organisation. To a certain extent, the legitimate world is a victim of its own accomplishment; the globalisation of the legal economy has globalised the underworld. This has provided the demands of numerous illicit services, and an improvement of policing ironically forcing criminals to become more organised to continue. The international organised crime groups that are working together and with an effect, dividing the globe amongst them. There is sufficient

Corporations in the United States have been at the forefront of the discussion on the sanctions that should be assessed to them following criminal activity since the 2008 stock market crash. The question has become what would happen if white-collar crime goes unpunished. In a 2014 article in the Duke Law Journal Stephen Buell stated, “If law and legal institutions do not respond seriously to wrongdoing in business firms, they will fail to protect the public and may produce or harden inequities in the administration of justice” (p. 823). Failing to protect society from corporations committing crime not only impacts the present, but also the future.

Transitional organized crime has made its way to the international agenda recently. The United Nations High-level identified transitional organized crime as a threat the world should be concerned with. Organized crimes include

Federal and State actually did a little to combat organized crime until fairly recently. One of the first measures aimed directly at organize crime was the interstate and Foreign travel or transportation in Aid of Racketeering enterprises Act. ("Opening Statement", 2000). However, the convergence in many ways of organized criminal activity, including drug trafficking and terrorism, is a growing concern to the United States and the world. Some experts in the field suggest that in a growing number of cases organized crime and terrorism are being jointly orchestrated, and that this trend can be developing into a global phenomenon. If true, we face a significant new challenge from both law enforcement and national security perspectives.

Andrew Bailey (2013) “The future of UK banking - challenges ahead for promoting a stable sector”. Bank of England [online]. Available from:

Organized crime involves a group of people made up of several ethnicities and international unions, who coordinate as well as work in unison, apart, or in line with legal enterprises alongside political realms. Many analysts have concurred that organized crime is both an impediment to academic projects and a realistic social issue that obligates urgent solution. Strategies implemented to limit organized crime often tend to be inclined towards one form of the two approaches. One of the approaches is tailored on dealing with individual members of the criminal gangs, whereas the second stresses on the structural aspects along with market networks that assist in accomplishing organized crime.

Although the term money laundering is relatively new, the concept goes back to around 67 AD. It is thought that the pirates smuggled and hid gold throughout the oceans. The pirates’ targets were European commercial vessels and were accomplished with the help of the British, French, and Dutch governments. This form of gold laundering went through the 16th and 18th centuries, until England offered pardons. These pardons allowed the pirates to keep their earnings, if they return to England and leave their pirate-like lifestyles (IMF). Similarly, on the other side of the world, Chinese merchants were too wealthy and needed to hide their profits. Commercial trading was prohibited, so this forced the bureaucrats to keep their funds safe through threats

“Since 2007 to mid 2009, global financial markets and systems have been in the grip of the worst financial crisis since the depression era of the late 1920s. Major Banks in the U.S., the U.K. and Europe have collapsed and been bailed out by state aid”. (Valdez and Molyneux, 2010) Identify the main macroeconomic and microeconomic causes that resulted in the above-mentioned crisis and make an assessment of the success or otherwise of the actions taken by the U.K government to resolve the problem.

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

Wages of Crime: Black Markets, Illegal Finance, and the Underworld Economy is a book by R. T. Naylor based on his views of organized crime and the government’s stance and involvement. Naylor writes from a mostly democratic point of view and presents his thesis quite clearly. Naylor's thesis in this book is that organized crime is a convenient myth handed to society by the government. In this book Naylor sets up four important concepts: first on the black market operations of guerrilla groups, second on the modern arms market, then on money laundering, and finally the underworld trade in gold. Throughout the book he talks about the critique of the public perceptions of organized crime, a discussion of anti-money laundering policies, and an analysis of terrorist financing.

These people have more opportunities to commit a white collar crime than a person with little authority. Peter Michelmore, a journalist for Readers Digest describes this situation well in his article, "On the Trail of a Scam" He describes a savings and loan scam and the man behind it all. "Meyer learned that New Era was run by John G. Bennet, Jr., a 57 year old evangelical Christian." (112) New Era was a getting money from a private university, in which he promised huge returns on their investment. New Era did show them huge profits, but only to gain their trust and invest more money. The private university was gaining trust in New Era and investing more money. Finally, when They had invested a large sum of money, New Era collapsed and John Bennet walked away with the university's money. Mr. Bennet is a prime example of our findings. He is a man over the age of eighteen and he is in a position of power. People have entrusted him with their money. To commit his crime, he needed to be in a position where he was trusted, or in authority. After he won their trust, he took their money. White collar crimes are growing at an alarming rate and must be curbed. There are many things that the nation can do to slow the growth of these crimes. The white collar crime that affects the most people is the scam. For that reason, scam prevention will be emphasized more than embezzlement. I feel that the most effective weapon against these crimes is to

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 economic impact of organized crime is staggering. “… a look at the economic impact alone gives a glimpse of the importance of this issue. The