Money laundering Essay Example | Topics and Well Written Essays - 1250 words

Money make clean - Essay ExampleFurthermore, the ML does not fork out to involve physical exchange of specie or currency. Modern concept thus considers a transaction or formation of relationship to be a case of money make clean if it involves any form of property or benefit, tangible or intangible earned through whitlow activity which includes tax evasion. ML does not necessarily require movement of criminal proceeds for macrocosm laundered. Thus, financial institutions especially banks can easily get involved in money laundering accomplish when money earned in a legitimate activity and deposited into a bank account in another agricultural by a person becomes a laundered money assumed as through with(p) with the connivance of the bank if he fails to declared the earnings in his tax return in the country in which it has been earned and the bank also fails to report it as s suspicious activity (Hopton 2009). The the States Office of the Comptroller of the Currency (OCC) has de fined money laundering as the criminal practice of filtering unclean gains or dirty currency through a sequence of dealings, so the currency is cleaned to appear as if earned by lawful conduct (McClean 2007). Criminals resort to money laundering to legitimise substantial dish out of their ill-gotten wealth as otherwise they cannot put it to use. Moreover, they do not need the entire money for their ongoing criminal ventures. They are motivated to launder their tainted money in order to have respectful postitions in society by investing the money so earned in powerful avenues. The proceeds of crime were once said to channel through launderettes in the USA to enable the genuine notes to be offered as lawful commercial income, thus earning the expression Money clean (McClean 2007). Money Laundering process It involves three stages as per the tradition. First, placement of cash in hand of criminal origin in to the financial dust through direct or indirect means. Second, resorting to layering by which receipt of criminal proceeds are blear through creation of layers of financial transactions with the object of hiding the audit trail and providing anonymity. Third, after productive layering, integration process pumps the laundered money into the mainstream economy so as to make them appear as funds received during the course of business. These stages are subtle in that they more often overlap or mesh place simultaneously (Hopton 2009). The Financial Action Task Force (FATF) FATF is autonomous body representing various governments and entrusted with cosmos of measures to ensure against ML and providing funds for terrorism using the global financial system. The recommendations of FATF are required to be implemented to counter money laundering and considered as the standard for anti-money laundering (AML) and counter-terrorist financing (CTF) (FATF 2010). Financial exertion Regulatory Authority (FINRA) FINRA is the autonomous regulatory body of the USA gove rning activities of securities firms in the United Sates. Anti-money laundering compliance program of FINRA requires each member to develop anti-money laundering program so designed as to monitor the members compliance with the requirements of the Bank Secrecy Act (31 USC) (FINRA n.d.). Suspicious Activity get over (SAR) Suspicious Activity Reporting is the requirement to be complied with by all financial institutions such as banks, credit unions, brokers or dealers in securities