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Money laundering

INTRODUCTION:

Money laundering is the process creating the appearance that large amounts of money obtained from serious crimes such as drug trafficking or terrorist activity, originated from a legitimate source. It is a crime in many jurisdictions with different definitions. It is a key operation of the underground economy. Money laundering Money is the practice of disguising illegally obtained money so that they appear legal.

Money laundering can be described as the process by which a blind person or disguise the identity or origin of the products obtained illegally so that seems to have originated from legitimate sources.

Money laundering is ipso facto (in fact itself) illegal acts that generates money are almost always criminal in some way (because if not, money should not be washed).

Criminals exploit the economic and financial globalization and advances in technology and communications in order to disguise the origin of funds have been obtained through illegal activities. They make extensive use of a wide range of techniques, such as the rapid transfer of money from one country to another, or use misuse of corporate vehicles to hide the true owner of funds.

Money laundering undermines international efforts to establish free and competitive markets and hinders the development of national economies. It distorts the functioning of market transactions can increase the demand for cash, interest is made and unstable exchange rates, result in unfair competition and greatly exacerbate inflation in the countries where criminals do business.

International efforts to curb money laundering and terrorist financing are a reflection of a strategy aimed at, first, attacking the economic power of criminal organizations or terrorists and individuals to try to avoid weakening benefiting from, or using illegal products and on the other hand, to prevent the harmful effects of the economy criminal and terrorism in the legal economy.

Laundering of proceeds of unlawful activities in countries that do not have an effective anti-money laundering and combating against the financing of terrorism (AML / CFT) system in place has one goal – to make use of structural weaknesses or to exploit the gaps in institutional capacity and the judicial machinery in order to benefit from the proceeds of crime with impunity. Money laundering is an essential aspect of the benefits of activity generated criminal and is an inevitable corollary of organized crime. operations of criminal organizations, according to the indications are to the accumulation of illicit profits, creating the need for money in direct proportion to the extent that such activities are developed and concentrated in the hands of a small group. massive amounts of cash generated from certain types of criminal activity such as drug trafficking, they leave traces, which are harder to hide that the traces for the same offenses.

This document provides an overview of the relationship between money laundering, and organized crime. The area in which organized crime is most recognizable is the laundering of money. A United Nations report concluded that money laundering is the tenth largest global economic activity – and estimates reliable attribute 4% of world population economics of organized crime. Organized crime has to legitimize its funds, as the problem for these entrepreneurs is that are cash heavy. This creates a variety of problems not least of which is most likely to be robbed and murdered.

The Application of the law, organized crime and Anti-Money Laundering Unit of UNODC is responsible for implementing the World Programme against money laundering, proceeds of crime and financing of terrorism, which was established in 1997 in response to the UNODC mandate through the United Nations Convention against Illicit Traffic in Narcotic and Psychotropic Substances of 1988. The Unit's mandate was strengthened in 1998 by the Political Declaration and measures to combat money-laundering adopted by General Assembly at its twentieth special session, which extended the scope of the mandate to cover all serious crimes, not just drug-related crimes.

The overall objective of the Global Programme is to strengthen the capacity of Member States to implement measures against money laundering and terrorist financing and to assist in the detection, seizure and confiscation of illicit proceeds, as required pursuant to United Nations instruments and other accepted standards worldwide, providing the necessary and appropriate technical assistance on request.

"The economy has gone global legal and business crime has been globalized

good. "Arnaud de Borchgrave, director of global project organized crime

Center for Strategic and International in Washington.

The area in which organized crime is more recognizable than you or I is money

money laundering. A United Nations report concluded that money laundering is the tenth

largest global economic activity – and reliable estimates attribute 4% of the

worlds economy of organized crime. Organized crime has to legitimize its funds

as the problem for these entrepreneurs is that they are safe. This creates

a variety of problems, not least of which is the most likely to be

robbed and killed. Another problem for Nigerians and Eastern Europeans is that

They are millions of millionaires in convertible currency, that anybody cares.

They have to turn these massive sums in pounds, dollars, Swiss francs or

Euros.

The illicit drug industry is told by a value of 400 billion U.S. dollars per year (ie

larger than the oil world and gas industry), with 400 regular customers – Y

200 billion U.S. dollars of that total is flushed with success each year. The UN estimates

that part of the illicit drug industry in Peru's GDP by 6%, Colombia

+ 7% and in Bolivia by more than 9%. In early 1998 the Government of Mexico concluded

that gangs in the country had overtaken the Colombians as the most powerful

drug cartels in the Americas – The benefits of the drugs have been conservative

estimated at £ 9000000000 – 5% of the country's GDP. A side effect discernible

this is the will of drug cartels to pay bribes to officials. Drug money

underlying property and stock prices, and much of the local economy. More

important drugs occupy a much larger share of exports: in Bolivia

drugs from Afghanistan were the most important export. However, money is not

undertaken in the country of origin, but at the retail stage, where gross profit margins are in some cases 300%.

In the past, the term "money laundering" applies only to financial transactions related to organized crime. Today its definition is often extended by the government and international regulators such as the U.S. Office of the Comptroller of the Currency to refer to any financial transaction which generates an asset or a value as the result of an unlawful act, that develop as tax evasion or false accounting. In the UK, do not even need to involve money, but any economic good. The courts relating to money laundering committed by private individuals, drug dealers, businesses, corrupt officials, members criminal organizations like the Mafia, and even states.

Given that financial crime has become more complex, and "Financial Intelligence" (FININT) it has become more recognized in the fight against international crime and terrorism, money laundering has become more important in political, economic, and legal debate. Money laundering is ipso facto illegal acts that generates money are almost always criminal in some way (because if not, money should not be washed).

In the U.S. right is the practice of participation in financial transactions to conceal the identity, origin, destination of funds obtained illegally. In the UK common law definition of the law is broader. The event is defined as taking any action with the ownership of whatever form in whole or in part the product of a crime that will disguise the fact that property is the proceeds of crime or obscure the usufruct of the property.

In other words, we say 'Money laundering' is any action taken to conceal, modify, use or possess the proceeds of any criminal conduct. Criminals try to launder money dirty "in an attempt to make it look" clean "in order to use the product has not been detected and put out of reach of law enforcement and tax authorities.

Transnational organized crime is considered a major threat to human security, impeding the social, economic, political and cultural societies throughout the world. It is a multi-faceted phenomenon has manifested itself in different activities, among others, drug trafficking, human trafficking, firearms trafficking, smuggling, money laundering, etc. In particular, drug trafficking is one of the main activities organized crime groups, which generates huge profits. UNODC works closely with governments, international organizations and civil society to strengthen cooperation to tackle the pervasive influence of organized crime and drug trafficking crime.

The United Nations Convention against Transnational Organized Crime is the main international instrument to combat organized crime.

UNODC assists countries to use the provisions of the Convention to create national criminal offenses to counter the problem, the adoption of new frameworks for mutual legal assistance, to facilitate extradition, the law enforcement cooperation, technical assistance and training.

As globalization has increased international trade, so the range of organized crime activities has broadened and diversified. The traditional hierarchical forms of organized crime groups have declined, replaced with loose networks working together to seize new market opportunities. For example, organized crime groups involved in drug trafficking are commonly involved the smuggling of other illegal products. The links between drug trafficking and other forms of transnational organized crime requires a more integrated approach to address this link. The signing of the United Nations Convention against Transnational Organized Crime in 2000 was a historic breakthrough in the fight against this threat.

The United Nations Convention against Transnational Organized Crime, which entered into force in September 2003, is the main international instrument to combat organized crime. The Convention commits states to introduce a series of measures including the creation of domestic crimes against the problem, adopting new frameworks for mutual legal assistance, extradition, law enforcement cooperation, technical assistance and training.

UNODC works closely with national governments, civil society organizations and to enhance international cooperation to counter the pervasive influence of organized crime and drug trafficking. The Unit has initiated and oversees several counter-narcotics and projects to combat organized crime. Moreover, the "fight against money laundering Act "Fainted in which everyone has been defined crimes and punishment has also been.

BRIEF ANALYSIS OF THE CURRENT SITUATION

As mentioned in the introduction, the crime of money laundering has not

however there was very strongly in our system. Perhaps we lack the necessary

abilities to detect and investigate this crime or is nonexistent. However, we would like to believe that the former to be true, because with liberalization trade in its heyday, there has been a lot of people from all over the world come to the country under the pretext of investors. Due to the lack of adequate knowledge always has been difficult on us to identify the investors is not the authentic original. Being a poor country which welcomes investment from all over the world, is sometimes seen if you start equiries against so-called investors you risk the possibility of chasing them away with their investments loved. As a result we are always in a dilemma not knowing what course of action to take.

It is partly for these reasons that our record of detection is not very impressive at all. These are however cases where money laundering

activities have been deducted. One of these incidents the BIAO MERIDIAN

bank had offices in Tanzania, Beyond this case we have

statistics to amplify the situation. This does not however mean that the money

Washing is not present in our country. The major emphasis was therefore

placed in the fight against other organized crime. The legal framework is in place generally caters to organized crime without specifically addressing the crime of money laundering. However, recently the focus has been on money laundering as well.

About the Author

–
Foram Thakar
2nd Year Student of B.A.LL.B.(Hons.)
Institute of Law, Nirma University(ILNU)

Latin America 2010 Closing Plenary