What does money laundering mean?

 

Money laundering

Money laundering is defined as an illegal process aimed at collecting funds from prohibited criminal activities such as drug trafficking or support for terrorist organizations, in a way that makes it appear that they are generated from legitimate sources, and this process was so named because the funds obtained from illicit operations are considered clean illegal funds and that the money laundering process will make it look clean, money laundering is a very serious financial crime followed by white collar criminals are criminals who commit non-violent crimes related to obtaining money, in addition to real crimes For criminals, money laundering is a scheme based on carrying out financial transactions intended to hide the identity and origin of the funds and hide the entity from which the funds were obtained. 

stages of money laundering

 To combat money laundering operations, we must understand the stages of its progression, since it begins with investing and introducing money from crimes and illegal acts into the financial system.  Laundered money is so embedded in the economy that it is difficult to distinguish between laundered money and money obtained from legitimate sources, scattering the relevant financial authorities and authorities. 

Money laundering risks

Money laundering operations involve risks both locally and internationally. Some of them are mentioned below:

 Tax Evasion – Money laundering operations are usually associated with complex tax evasion, with money launderers depositing money into their personal accounts rather than personal accounts. 

 Burglary and Larceny: What is known as criminal theft, most of which are physical thefts that are stashed or converted into cash through the criminal economy, and thefts include jewelry, vehicles, and other personal property. 

The smuggling trade: Drugs move between countries, money launderers finance this criminal activity to generate more money, and drug traffickers receive the drugs themselves or in cash. 

Corruption and bribery: Money laundering operations give rise to many cases of corruption, and the proceeds can be physical or monetary funds.

Fraud: Represents fraud for banking and electronic crimes.

Methods against money laundering

 The following are some of the ways you can help limit the spread of money laundering:

Optimizing your searches with the help of technology: As searches expand to broader areas where no one can pass without monitoring and tracking, technology helps make these processes more accurate and export reports more efficient. 

Suspicious activity monitoring: This process consists of covering, logging, monitoring and reporting all suspicious processes and processing work progress thereafter.

 Standardization of systems: The difference in the types of systems helps anti-money laundering efforts by agencies and prevents multiple branches from communicating effectively with each other. 

Establishing a regular network: This is done by holding regular meetings that allow financial institutions and law enforcement legal persons to keep abreast of and verify suspicious matters, and promote partnership between the public and private sectors.