Money Laundering is to ensure that the money that has been acquired illegally appears to have been obtained in a legitimate way. In simpler terms, it is the process of turning the profit of illegal activity into a legitimate income.
Money laundering which is the process of disguising the proceeds of crime and integrating it into the legitimate financial system can also be defined as actions and activities aimed at hiding, covering or showing the nature, source, location, status, movement and who they own from the crime in order to hide their crimes or to provide a legal image to crime revenues. Money laundering is a crime.
Money laundering is essential for criminal organizations to use illegally obtained money effectively. The money laundering process usually consists of three steps: placement, layering and integration.
Placement: The first entry of illegal money into the financial system is its settlement.
Layering: hides the source of money through a series of transactions and bookkeeping tricks.
Integration: the money laundered is withdrawn from the legitimate account to be used and the money is returned to the criminal from the legitimate source.
Not only these three methods of money laundering but also There are basically methods other than. To illustrate;
In the export dream: it is a method frequently used in recent years in Europe. It can make it appear as exporting to any country on paper.
Earn money from the stock market: By buying a stock or buying bonds through brokers, money can be laundered and displayed as a business.
Antiques and paintings: Antiques or paintings are taken with money that cannot be transferred. Later, these are sold against foreign currency and money is laundered.
Electronic money should provide an easy way to transfer value without revealing its identity, such as banknotes that are not tracked. Money can also be streamed through online auctions and sales, gambling websites, and then turned back into real, usable and non-traceable "clean" money.
The newest form of money laundering includes cryptocurrencies like Bitcoin. Although not entirely anonymous, it is increasingly used in blackmail plans, drug trafficking and other criminal activities due to their relative anonymity compared to more traditional forms of currency.
If money laundering is not controlled, the social and political costs may have serious. The economic and political impact of criminal organizations can weaken the social fabric, collective ethical standards and ultimately the democratic institutions of society. In countries transitioning to democratic systems, this criminal impact can undermine the transition.
In all steps from production to consumption, tax evasion should be prevented and large movements of money should be monitored.
•Local governments should be fully authorized in the areas of them.
•The media should fully support the fight against organized crime and should not broadcast to legend mafia members.
•In the private sector, cartels should be prevented and the underground economy should be reduced by eliminating tax-free earnings as much as possible.
•Businesses can protect themselves from financial crimes and strengthen AML compliance processes using AML software such as Sanction Scanner.
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