Money laundering by Imad Feneir
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Money laundering is the process of concealing the origins of illicit funds to disguise and legitimize them. It has detrimental effects on economic development by distorting data, complicating policy management, and facilitating crime. Anti-money laundering efforts involve regulatory bodies and international cooperation to combat these threats, with an emphasis on the importance of developing nations adopting strict laws.
Money laundering by Imad Feneir
- 2. What is Money Laundering? Effects on Economic Development Anti-Money Laundering Efforts Conclusion
- 3. What is Money Laundering? Definition: The process of disguising the proceeds of crime in a try to hide their illicit origins and legitimize their future use. Objective: To conceal true ownership and origin of the proceeds, a desire to maintain control, a need to change the form of the proceeds. Techniques: They can be simple, diverse, complex, accurate, but secret.
- 4. Stages of money laundering 1- Predicate Crimes *Corruption and Bribery
- 5. Stages of money laundering 1- Predicate Crimes *Fraud
- 6. Stages of money laundering 1- Predicate Crimes *Organized crime *Drug and human trafficking *Environmental crime
- 7. Stages of money laundering 1- Predicate Crimes *Terrorism *Other serious crimes.
- 8. Stages of money laundering 2- Placement Moving and placing the funds into financial institutions or the retail economy. * Banks * Brokerage firms * Financial services * Money transfer * Realtors
- 9. Stages of money laundering 3- Layering Multiple and sometimes complex financial transactions are conducted to continue hide their illegal nature. * Change of currency into different currencies. * Movements of money to different countries.
- 10. Stages of money laundering 4- Integration Illicit funds re-enter the economy disguised as legitimate business earnings. * Securities * Businesses * Real estate * Investment
- 12. Effects on Economic Development It will distort the economic data and complicate government’s efforts to manage economic policy. It will have adverse consequences for interest and exchange rate volatility. Reduce the annual GDP(Gross Domestic Product). Distorts investment and depresses productivity. Facilitates corruption and crime at the expense of development.
- 13. Effects on Economic Development Can increase the risk of macroeconomic instability. Criminal organizations can transform productive enterprises into sterile investments. Outbound capital flows: facilitating illicit capital flight. Inbound capital flows: reducing foreign investment. Trade: distorting prices and content.
- 14. Anti-Money Laundering Efforts Creating anti-money laundering regulatory and enforcement organizations in countries and regional groupings. - Financial Action Task Force (FATF), UN, Egmont Group - Financial Crimes Enforcement Network (Fin CEN) - Office of Foreign Assets Control (OFAC) - Bank Secrecy Act (BSA) and the USA Patriot Act of 2001 Cooperation between national governments.
- 15. Conclusion Criminals are now benefit from the globalization of the world economy by transferring funds quickly across international borders. Money laundering threatens economic development. The international financial community should strongly support anti-laundering efforts, and cooperate to share information. Developing countries should impose anti- laundering laws to improve the credibility not only its financial sector, but its governance as well.
- 16. Thank you for your attention