Al Capone, known as Scarface, was born in Brooklyn in 1899. A member of various gangs, including his childhood, Al Capone was America's most famous organized crime leader from 1925 to 1931.
On June 5 1931, Capone was charged with evasion of 22 federal income taxes between 1925-1929. On June 12, Capone and his gang were charged with violating the law between 1922 and 1931. He appeared on trial in October and was found guilty of three of 23 crimes. He was sentenced to a $ 50.000 fine and 11 years imprisonment. Capone, who spent many years in jail in various jails, was released on parole in November 1939. After his release, he moved to Florida and died in January 1947.
About Anti-Money Laundering
Money laundering is the gaining of money obtained through illegal means as if it was obtained legally. Money laundering can be realized in a variety of ways. For example, Al-Cardone is a criminal who covers up his illegal money by purchasing laundries.
According to the statements made by the United Nations Office on Drug Crime, more than $ 2 trillion of money is laundered each year. The series of regulations implemented by countries and governments to prevent money laundering is the greatest evidence in understanding the problem's seriousness. Also, there are many international organizations such as FATF that constitute Anti-Money Laundering regulations.
How the Term Money Laundering Originated?
Al Capone is also known as the person who gave the term money laundering. Money laundering is not a new activity in our lives. However, it was because of Al-Capone that we got to know it in terms of terms. Al-Capone has made the source of the money illegally obtained by buying laundries in cash invisible. Thus, the laundries he bought became a front in hiding the money he obtained through drug smuggling, prostitution, and tax evasion.
The biggest reason most gangsters such as Al Capone used laundries as a cover for money laundering activities was that the amount of cash flowing into laundry operations was challenging to track.Thus, large sums of money could be processed in one go without being noticed.
What Are The Stages of Money Laundering?
Smurfing: Smurfing is the prevention of reporting and informing businesses that are obliged to provide continuous information and reports to the authorized institutions.
Layering: It is the second stage of the money laundering process. Illegal income is obtained at this stage, legitimate assets are purchased, and the laundered money is legalized and transferred. The layering can be repeated several times, and the income gains a little more legitimacy with each iteration.
Integration: The integration stage is the mixing of revenues into a legitimate economy. In this way, the income takes on a fair appearance and is completely rid of its illegal appearance.
However, no matter how long it goes, illegal income is never completely lost. It does not become legal. Because revenues are not lost, the source of crime income is more limited than an ordinary income. Therefore, if the necessary precautions are taken early, the illegal money source can be detected quickly.
How to Prevent Money Laundering?
The globalization of the financial system and developments in the communication network has made it easier to hide the source of crime. Nowadays, it is inevitable to be more careful against money laundering activities and increase the severity of the measures taken.
The financial sector has more obligations to follow than before. Also, the globalization of crime means that space for a criminal to commit crime expands. Therefore, the law enforcement authorities should be aware of and cooperate, not only of their jurisdictions and powers but also of all competent authorities.
Technology offers financial companies many new solutions in the prevention of financial crimes. AML compliance software such as the Sanction Scanner helps companies in preventing money laundering and terrorist financing crimes.
With its AML solutions, Sanction Scanner aims for businesses to take measures against money laundering risks and financial penalties. With AML Transaction Monitoring, you can scan your customer's identity and transaction information and easily perform your Customer Due Diligence (CDD) processes in case of any risk.