MONEY

LAUNDERING Legal English

A Class Presentation on: -

PROCEDURE

Presented by: -
Sanitya Kalika
(31/070)
What is Money Laundering?
 “The process used to disguise the source
of money or assets derived from criminal
activity”
 Include:
 Drug trafficking
 Extortion
 Corruption
 Fraud
Why do the laundry?
Criminals want to:
 Avoid prosecution
 Increase profits
 Avoid seizure of accumulated
wealth
 Appear legitimate
 Tax evasion

(They are trying to conceal the origin

of the cash)
The basic money laundering process
has three steps:
 Placement
 Layering
 Integration

 There are so many money laundering systems existing

that it’s difficult to note all of them, but all of them have
common features and practically they mean only the
endless variations of the same theme. – Gerald Moebius
 Placement
 the launderer inserts the dirty money into a
legitimate financial institution
 riskiest stage of the laundering process
 The money can be:
- banked
- gambled away in casinos, lotteries and sports
bets
- invested in precious metals and luxury goods
Layering
 involves sending the money through
various financial transactions to change
its form and make it difficult to follow.
 may consist of several bank-to-bank
transfers, wire transfers between different
accounts in different names in different
countries
 most complex step in any laundering
scheme
Integration
 the money re-enters the mainstream
economy in legitimate-looking form
 By investing in
- luxury
- property market
- financial investments or
- buying arts
 ANY
QUERIES??
For your patience… 