Money Laundering :: essays research papers fc

Financial Accounting For Financial Services subsidization bills LaunderingThe word cash clean, according to the myth, is derived from Al Capones radiation pattern of using a string of coin-operated launderettes in Chicago to cover his revenues from gambling, prostitution and protection rackets. Its a nice story but not true, currency laundering is so called because it perfectly describes the process of removing the stains and smells which money acquires when criminals net it.In this report I will go on to talk about the topic of money laundering in the following order firstly, I will begin by developing what is money laundering?, why it is do?, and how it is done? I will therefore go on to explain the effects of money laundering and the institutions/organisations that are at risk from these activities. I will also be discussing the current situation in the UK regarding money laundering and whether anything can be done to prevent or stipulate laundering activities, and wi ll then go on to conclude my findings.Money laundering is the process by which criminals attempt to conceal the true short letter and ownership of the proceeds of their criminal activities. If they are successful they can then maintain control over the proceeds and, so, provide a genuine cover for their source of income. J.D. Mclean defined money laundering in the world(prenominal) Judicial Assistance as"Although the proceeds of crime will be kept as capital for further criminal ventures, the sophisticated offender will wish to use the rest for other purposes. If this is to done without racetrack a risk of detection, the money which represents the proceeds of the original crime must be "laundered" put into a state in which it appears to have an all told respectable provenance"It is important to bear in mind that money laundering is a process (often a highly complex one) earlier than a single act. In an effort to expose and analyse this phenomenon it has effec t common to use a three- point in time model which encompasses an ideal money laundering scheme. The three stages are as follows* Placement introduceThis is where cash derived now from criminal activity (e.g. from sales of drugs) is first placed either in a financial institution or used to purchase an asset.* Layering StageThe stage at which there is the first attempt at natural covering or disguise of the source of the ownership of funds.* Integration StageThe stage at which the money is integrated into the legitimate economic and financial trunk and is camouflaged with all other assets in the system.