Factors contributing to money laundering

1. A high proportion of informal incomes and business, the existence of parallel economy, or "black market"

2. Insufficient mechanisms of control and monitoring activities of financial institutions. Non-compliance with international standards of financial regulation developed by specialized international organizations.

3. The high rate of corruption among state executive, law enforcement and judicial authorities

4. Inability or limitation opportunities of exchange financial information with foreign law enforcement agencies.

5. Inadequate procedures for the establishment of financial and non-financial institutions or opening branches abroad.

6. Legislating of the secrecy of financial transactions. The lack of requirements for transparency in financial transactions and ownership of assets.

7. The widespread of using by enterprises and banks of transactions that involving offshore companies

8. The existence of anonymous cash accounts and financial instruments, including stocks and bonds that allowed payment of money "to the bearer."

9. Access of financial institutions to international centers of trading precious stones and metals.

Methods of money laundering

When we are talking about methods of money laundering first of all we should talk about the strategy. There are many strategies of money laundering.

Models/strategies of money laundering

Three Steps Strategy (Exhibit 1.1)

1 Step – Placement

2 Step – Layering

3 Step – Integration

Placement

Placement is the physical placement of cash in the mobile financial instruments that are away from their places of origin, allocation in traditional financial institutions, non-traditional financial institutions, retailers, or completely outside of the country.

Layering is separation of illicit income from their source through a complex of chain of financial transactions designed to disguise the audited track of these revenues.

Integration

Integration is the stage of legalization process for creating of fictive income. During this stage laundered money returns into economy.

Four sector model (Exhibit 1.2)

In this model stand out sector and related washing step. The criteria are: the legality / illegality of operations and country of committing the underlying crime / country "laundering" of money.

The first sector is the country of the underlying crime/legality. In this sector is performing an internal pre-laundering.

The second sector is the country of the underlying crime / illegality. This sector is for collecting pre-laundered money and preparation for smuggling.

The third sector is the country of "laundering" money / illegality. This sector is for preparation for delivery of money into the legitimate financial system.

The fourth sector is the country of "laundering" money / legality. Here is having place are some disguising actions such as transactions or investment.

And the last model of which I would like to tell is Two stage model.

Дата добавления: 2015-10-31