Necessity of money laundering

O Introduction

o Necessity of money laundering

o Factors contributing to money laundry

o Methods of money laundering

O Models of money laundering

§ Three steps model

§ Four sector model

§ Two stage model

o Practical methods

o Set of easy rules for money launders

o Examples

o Conclusion

· Fighting against money laundering

O Introduction

O FATF

§ Structure

§ Objectives

§ FATF 40+9

o FATF Black list

O Conclusion

· List of references

Executive summary

I decided to choose this topic because I think it is very interesting and actual problem. I believe that money laundering is a current interest topic for many reasons. First of all money laundering is very common in Russia from 1991 to today. Secondly, money laundering includes all countries of global economy and every year it damaged global economy. Thirdly, if we will know how it works, we will know how to fight against it.

My research will consist of two main parts:

In the first part I will explain what is money laundering, why it takes place and how it works.

Second part will contain information about fighting against money laundering. What is this? Who is fighting against money laundering and how it works.

In my research I used quotations from official sources such as fatf-gafi.org and telegraph.co.uk and others.

The purpose of this research is to collect information about:

1. international practice of money laundering

2. strategies and methods of applying this strategies and models

3. reasons and factors contributing money laundering

4. how to fight against money laundering

Enjoy my research paper J

Introduction

Money laundering is the process of substitution of real illegal sources of funds to fictitious legal. Income from illegal activities are carried out through a series of transformations (conversion, the movement across the border, moving to the firm's capital, the issuance of a fictitious loan, etc.) to hide their original source and to make it appear that they are derived from a completely legal operations.

The meaning of money laundering is the substitution of their origin, but not tax evasion or cashing in, although as a secondary option it can be for this purpose. Laundered money can be used in legal way for business or for personal expenses.

Necessity of money laundering

The necessity of money laundering occurs in three cases. First, if the origin of the income was a crime: illegal drug trafficking, racketeering, corruption, etc. Criminals, who receive this kind of income, have to launder it in order to be free in spending this money. Second, if the entrepreneur or company covers part of legal income from increased tax revenue by understating or overstating expenses or using unaccounted cash. In this case, you must replace the real source of the money on other which taxed less or not taxed at all. Third, sometimes the recipients of money do not want to show the real source of money for security, ethical or political reasons. This relates to the activities of international non-governmental organizations in countries which are not allowed foreign funding of such activity as financing of terrorists or financing of election campaigns.

Дата добавления: 2015-10-31