Лекция: MONEY LAUNDERING

The process of turning dirty money, that is money made from criminal activities into clean money by masquerading it as legitimate profits is called money laundering. Most money laundering involves illicit profits from drug trafficking, prostitution, extortion, theft or other criminal activities, which are moved through a series of bank accounts or sometimes non-bank financial institutions such as currency exchange offices, insurers, importers, exporters and other trading companies, express delivery services and other money movers to make them appear legal. The bulk movement of illicit money in cash across international borders is also a big problem. Money launderers have one big advantage in moving big sums of cash across borders because they want no other trail. The disadvantage is that it can be detected and seized by сustoms.

Money laundering can lead to the political, economic and social destabilization of the country. As an example, a report released by the organization of American states showed that in Latin America the drug business and the drug money laundering business, which have reached the level of billions of dollars a year have resulted in drug related violence and corruption which were undermining the social welfare and institutional stability in the area. Proceeds derived from criminal activities are available not only for starting the businesses, investing etc. but also for paying the corrupt officials. The organized crime and terrorist organizations with their sources of wealth and power are able to control the government, the armed forces and the police forces, that will definitely end up serving the criminals rather than the citizens.

Money laundering is an international phenomenon and to fight against it the maximum cooperation between states in investigating, prosecuting and confiscating assets of money launderers is necessary. It is the problem that requires the coordinated effort, the necessary laws and the necessary commitment.