Money laundering

1. What
is
money
Laundering..?
BY:
Sadiq Ahmed

2. Money laundering
•The word “laundry”
literally means
“cleaning”
•Metaphorically,
money laundering
refers to “cleaning
on money”

3. Money laundering
• “Any financial transaction
which generates an asset
or a value as the result of
an illegal act.”

4. Definition:
According to Swiss Bank:
• Money laundering is a process
whereby the origin of funds
generated by illegal means is
concealed (drug trafficking, gun
smuggling, corruption, etc.)

5. Money laundering includes:
Theft
Fraud Tax evasion
Human trafficking
Drug trafficking Terrorism
Robbery Arms smuggling
Prostituti Corrupt

7. Money Laundering Process
1 •Placement
2 •Layering
3 •Integration

8. Placement
This is the first step of the money-
laundering process and the ultimate aim of this
phase is to remove the cash from the location of
acquisition so as to avoid detection from the
authorities.
Ex: Dividing large amount of money into less smaller terms that are
deposited directly into different bank account.

9. Layering
Layering involves moving funds around the
financial system, often in a complex serious of
transactions to create confusion and complicate
the paper trail..
Ex: Exchanging money in larger or smaller amount, or transferring
funds to numerous accounts in one or more financial institutions.
Acct 1, Bank C
Acct 1, Acct 1, Acct 2, Acct X,
Bank A Bank D Bank B Bank Y
Acct 2, Bank B

10. Integration
The ultimate goal of money laundering process is
integration. Once the funds are in the financial system and
insulated through the layering stage, the integration stage is
used to create the appearance of legality through additional
transactions.
Ex: Purchase or resale of real estate, investment in securities etc.
Or funnel such money into various dummy firms and get repaid
through salaries, rent, leas on non- existing assets.

11. Organizations fighting for money laundering
Other global organizations fighting
money laundering include:
• United Nations,
• The International Monetary Fund,
• The World Bank