You must have heard the term money laundering before and wondered about its meaning and how and the possibility of money laundering?
Well, the topic is definitely not related to soap and water. To learn more about it, follow this article with us, in which we will explain everything you need to know about money laundering in detail.
Meaning of money laundering
Money laundering is called the so-called shadow economy, and black economies or shadow economies, involve, in large part, the earning of money from illegal sources.
Due to the fear of the owners of legal accountability and their fear of the people, they resort, after gaining it in the absence of the law or the complicity of those in charge of it or in another country, to convert this illegal wealth into a wealth that appears to be legitimate, such as buying agricultural land or building real estate or establishing factories or deposits in banks or share with others.
Why is money laundering?
Money is laundered illegally to gain income, conceal its source, or alter its form. Because proceeds obtained from illegal methods cannot be used freely.
qIn the event that it is determined that the income is obtained through illegal means, those who earn this income will be sentenced to imprisonment and fines on the one hand.
On the other hand, they will be deprived of this revenue.
Therefore, criminal organizations aim to increase their criminal activities by laundering illegal money.
What are the methods used in money laundering?
Various institutions and methods are used to launder money. We will describe some of these methods below with examples:
split deposit
It is a method of preventing said transactions from being reported to authorized institutions within the scope of providing information continuously or identifying.
By conducting transactions by legal limits imposed by states regarding the obligation to consistently provide information and identification.
Opening an account with a fake or wrong name
In order not to draw attention and prevent monitoring, the entire transaction is carried out in the name of a fictitious or any other person.
Partnership in money laundering with financial institutions
With this type of transaction, to overcome the reporting obligation, it is ensured that the notification is not given in agreement with the management or employee of the institution where the money is deposited above the amount of the notification.
The specific case study on this topic is as follows:
- The illicit profits are transferred to the intermediary enterprise in cooperation with the workers of the intermediary enterprises.
- In return, checks issued by the intermediary institution are received.
- Then deposit these checks in the client's account opened by the brokerage house in fictitious names.
- The funds in this account are then used to purchase bearer bonds and certificates of deposit.
- Then, at maturity, the coupon rates and interest rates on the bond are taken, and certificates of deposit are sold for transfer to the bank account.
Benefit from various companies
- Non-operating firms are used.
- Operating companies are used legally.
- Fake companies are used.
Money laundering with workers
It is a method used by money launderers with the idea that the process of transferring workers in developed countries to their relatives back home will not attract attention.
Partnership in crime with foreign financial institutions
It is a way of cooperating with cross-border centers and other foreign financial institutions.
exchange offices
It is the receipt of illegal income in cash by foreign exchange offices and its placement in the financial system.
Money laundering through cash smuggling
In this method, the money obtained from illegal activities is transferred to the countries where there are not many obligations either by the people who act as money carriers or by any means.
Later, this money is transferred to the financial system of these countries.
As a result of these transactions, these funds, which are provided with legal images, can be sent directly to the country in which it was first obtained.
Or it can be sent to different countries and used without risk.
Prize money from games of chance
In this method, the jackpot winner is found by the ovaries before he gets the jackpot, and he is awarded more money than the jackpot he won. Then the big prize is taken by the money launderer.
Casinos or other businesses
In this method, the launderers' money is used to buy gambling bars from the casinos, but no gambling is played or played very little, and the coins are exchanged for checks taken from the casino.
The respective checks are then deposited in a bank, and the check rates are transferred from here to another country or used to purchase real estate.
On the other hand, the money can be transferred directly to the casino, and in return, the money left after the commission can be transferred into checks that are issued as gambling winnings.
in both cases; Questions from money holders about the source of that money are answered as gambling winnings.
Why is Anti-Money Laundering necessary?
Black money laundering has reached appalling proportions today. Although it is impossible to determine the exact amount, it is estimated that billions of dollars in money laundering crimes are committed every year.
The source of black money is always illegal, especially since the drug trade is the leader in these crimes. The drug trade is often found, especially behind the rising wave of terrorism in the world.
Drug smuggling, which was in the hands of large mafia groups in the past years, has gradually come under the control of terrorist organizations.
This development results in the fact that terrorist organizations, which pose a great danger to every country, can easily be out of control. Other activities include money smuggling, child and youth trafficking, white women's trade, organ trafficking, kidnapping, extortion, and commercial fraud.
The above illegal activities create major social problems in every society. In addition, the increase in the amount of money laundered every day increases the political power of criminal organizations in addition to their domination of state institutions.
On the other hand, money laundering negatively affects national economies.
for example: Although there is no change in the amount of supply and demand for goods and services in the economy, sudden changes in the amount of money put into the market may cause price fluctuations.
So it is clear that it is necessary to keep our societies intact that we support the fight against money laundering in various ways as it devastates the country in all respects.
