MONEY LAUNDERING

PROCESS
Name
Roll No
Subject
Date

:- Padmini R. Jadeja
:- 27
:- Legal Regulation of
economic practices
:- 13 October 2016

Introduction to Money
Laundering
What is Money Laundering???
Money laundering is the process by which
criminals attempt to hide and disguise the
true origin and ownership of the proceeds of
their criminal activities. The term Money
Laundering is also used in relation to the
financing of terrorist activity (where the
funds may, or may not, originate from crime).

Origin of The Money Laundering

Expression
Money laundering as an expression is one of
fairly recent origin.
The original sighting was in newspapers
reporting the Watergate scandal in the United
States in 1973.
The expression first appeared in a judicial or
legal context in 1982 in America in the case
US v $4,255,625.39

The Money Laundering

Process
There are three stages involved in money
laundering;
A.
B.
C.

Placement
Layering
Integration

A. Placement
The initial movement of
criminally derived currency or
other proceeds of crime, to
initially change its form or
location to places beyond the
reach of law enforcement.

Forms of Placement
Depositing into
accounts via tellers,
ATMs, or night
deposits

Exchanging small bills

for large bills

Changing currency to
cashiers checks or
other negotiable
instruments

smuggling or shipping
out side the county

B. Layering
The process of separating the
proceeds of criminal activity from their
origin.. Disguising the origin through
the movement of funds trough
accounts and financial institutions. The
use of layers of complex financial
transactions; loans, letters of credit,
investments and insurance

C. Integration
The process of using an apparent
legitimate transaction to disguise the
illicit proceeds allowing the laundering
of funds to be disbursed back to the
criminal. Funds often are used for
payment for operations, spending on
luxury goods or investments in
businesses.

Stages Of Money Laundering CycleA Graphical Illustration

Placement

Placement

Integration
Layering

Techniques Of Money Laundering

Placement
Smurfing
Shipping Money
Abroad
Placement through
Banks
Use of Pass
Through or
Payable Through
Accounts
Electronic Wire
Transfers
Insurance Products
Investment Related
Transactions

Layering

Integration

Tax Havens &

Offshore Banks

Use of haven bank

credit cards

Bank Secrecy Law as

a layering tool

Receiving as
consulting or
directors fee

Corporations & Shell

Companies as a
layering tool

Arrangement of
corporate loans

Use of trusts
Use of walking
accounts
Establishing self
owned bank
Use of intermediaries

Proceeds of
gambling
Real estate
transactions
Stock Purchase
Use of business
International
importing and
exporting

Thank you