Business

What is money laundering? Find out for yourself

I am sure you have heard of money laundering several times and don’t really know what it means.

Others may say this has something to do with cleaning because of the word laundering. Yes that is very true.

WHAT IS MONEY LAUNDERING?
Money laundering is the process whereby criminals try to hide and disguise the true source and ownership of the proceeds of the criminal activity, thereby avoiding prosecution, conviction and confiscation of the criminal funds.

By a simple definition, It is a process where dirty money is converted into clean money.

Dirty money comes from any sources such as drug trafficking, human trafficking, gambling, smuggling and many more.

The most simple source of dirty money nowadays are bribery, fraud, tax invasion and kidnapping. Monies that go through this process are known to be very collosal amount of money.

We have three stages that the money made through dirty means are made clean.

Cleans means, nobody will be able to know the source or whereabouts of the money. It is done in three steps.

FIRST 1 :Placement stage
Here, the money made from all the illegal or criminal activities is converted into monitory instrument such as money order, travelers check or it deposited into money institutions or banks. This is where every thing starts.

STAGE 2: Layering
The funds are transferred into other accounts or other financial institution to further separates the money into many parts from it criminal source.

STAGE 3: Integration stage
This is the last stage where the funds are introduced into the system or economy.

These money are used to purchase legitimate assets or used to fund other criminal activities which comes under legitimate business to show the money is from a legal source..

Now in summary, money made from dirty source is transferred into various banks accounts, then it is laid through wide transfers, banks deposit and other money institution, from there the money is used to buy luxury asset or financial investment which generates more money to cover up the dirty money made.

Pls share to get somebody educated

Source; opera news

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