Money Laundering is to ensure that the money that has been acquired illegally appears to have been obtained legitimately. 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Integration: the money laundered is withdrawn from the legitimate account to be used, and the money is returned to the criminal from the legitimate source.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 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 currency forms.
If money laundering is not controlled and these crimes continue to be committed, the social and political costs of this situation can be serious. In addition to these costs, the economic and political impact of money launders can weaken the social fabric, collective ethical standards, and ultimately the democratic institutions of society. In countries transitioning to democratic systems, this criminal influence can undermine the transition process.
In all steps from production to consumption, tax evasion should be prevented, and large money movements should be monitored.
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