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Unformatted text preview: Slide 6 in money laundering and corruption HOW MONEY IS LAUNDERED In money laundering, the proceeds of crime are run through the financial system to disguise their illegal origins and make them appear to be legitimate funds. Most often associated with organized crime, money laundering can be linked to any crime that generates significant proceeds, such as extortion, drug trafficking, arms smuggling, and white-collar crime. Although money laundering often involves a complex series of transactions, it generally includes three basic steps. A criminal’s objective in laundering illicit proceeds is to : Get it out; cover it up; bring it back The first step is the physical disposal of cash. This placement might be accomplished by depositing the cash in domestic banks or, increasingly, in other types of formal or informal financial institutions. Or the cash might be shipped across borders for deposit in foreign financial institutions, or used to buy high-value goods, such as artwork, airplanes, and precious metals and stones, that can then be resold for payment by check or bank transfer...
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This note was uploaded on 04/04/2012 for the course AASTT 24 taught by Professor Khlilaburass during the Spring '12 term at Arab Academy for Science, Technology & Maritime Transport.
- Spring '12