All About Money Laundering
Money Laundering History, What is it?
A brief history of money laundering.......money laundering is a crime., It is also the
world's third largest industry by value".
Al Capone's 1931 conviction for tax evasion leads to the modern practice of money laundering
The act of "money laundering" was invented during the Prohibition era in the United States. Many
methods were devised to disguise the origins of money generated by the sale of then-illegal alcoholic
Following Al Capone's 1931 conviction for tax evasion, mobster Meyer Lansky transferred
funds from New Orleans slot machines to accounts overseas. After the 1934 Swiss Banking Act which created the
principle of bank secrecy, Meyer Lansky bought a Swiss bank where he would transfer his illegal funds through a
complex system of shell companies, holding companies and offshore accounts
The term of "money laundering" itself does not derive, as is often said,
from the story that Al Capone used laundromats to hide ill-gotten gains. It was Meyer Lansky that perfected money
laundering's older brother, "capital flight", transferring his funds to Switzerland and other offshore places. The
first reference to the term "money laundering" itself actually appears during the Watergate scandal. US President
Richard Nixon's "Committee to Re-Elect The President" moved illegal campaign contributions to Mexico, then brought
the money back through a company in Miami. It was Britain's Guardian newspaper that coined the term, referring to
the process as "laundering."
Money Laundering Money Laundering through offshore financial institutions is one of
the biggest concerns of offshore banking.
What is Money Laundering Money laundering is the process of concealing money obtained
from illegal means (crimes) by making its source appears to be from legitimate and legal transactions.
Anti-Money Laundering Software Use an effective anti money laundering software for
customer profiling to develop a system of "Know Your Customer".
How to Launder Money? There are three main stages in carrying out money laundering:
placement, laying, integration. This can be done simultaneously in the course of single transaction or can be
done in stage by stage.
Definition of Money Laundering Money laundering has always been a controversial
issue; but what do we really know about the concept of money laundering?
Anti Money Laundering According to the International Monetary Fund, the aggregate
amount of laundered money in the world ranges between 2 to 5 percent of the world’s gross domestic product
(GDP), which approximately between 590 billion USD and 1.5 trillion USD.
Tags: anti-money laundering Money Laundering