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MONEY LAUNDERING AND ITS PREVENTION - Coggle Diagram
MONEY LAUNDERING AND ITS PREVENTION
Definition: UN Vienna 1988 convention - conversion or transfer of property, knowing such that property is derived from any offense(s) for the purpose pf concealing or disguising the illicit origin of the property.
Components
LAYERING: the launderer engages in a series of transactions and bookkeeping tricks to conceal the source of money.
INTEGRATION: refers to the injection of laundered proceeds back into the economy in such a way that they re-entre the financial system as normal business funds.
PLACEMENT: this stage introduces dirty money into the legitimate financial system. Criminals deposit money in legitimate financial institutions to make it seem like comes from lawful sources.
IMPACTS
social
political: corruption at various levels of govt and private institutions - corruption erodes public trust - money laundering undermines the rule of law by promoting a culture of impunity.
security
international relationships: International partners may be reluctant to engage in business or cooperative with jurisdictions that are seen as facilitating illicit financial activities.
Economic:
CHALLENGES
Globalization
technological sophistication
legal framework
resource constraint
dearth of manpower
MEASURES TAKEN
Legislation
dedicated agency
intelligence unit
govt. policies
global coop:
WAY FORWARD
Technology
global collabn:
strengthening legislation
enhanced independence of ED
training
research