Cj_Money_Laundering

Costs of money laundering & terrorism: Costs of money laundering & terrorism States that don’t fight corruption & money laundering, are allowing these resources to be used to support these crimes. Financial & economic stability Human security uneven playing field for honest businesses Increased costs of doing business Promotes corruption Lowers tax base Undermines social welfare cost burden paid by poor. Running Head; MONEY LAUNDERING Abstract Money laundering is a problem affecting the globe. It has been used for centuries in order for criminals to be able to hide their assists from the law. However money laundering must be stopped for it has allowed terrorist to fund their crimes. Allowed millions of kilos of drugs to be smuggled into our country and cost the lives of thousands of people due to allowing criminals to continue their crimes. It must be stopped or dramatically slowed down in order to insure the protection of the world and more importantly the America people. Converting criminal incomes to a form that permits the offenders uncontrolled spending and investing has been a concern for both perpetrators and the government since the popularity of the Mafia. On the one hand, criminals invent ways of transferring funds through bank wires, purchase and sale of secured credit cards, jewelry, and illegitimate businesses masked behind multiple legitimate companies. Al Capone was brought down not for the numerous crimes associated with alcohol, murder and prostitution, but for tax evasion. “Laws against handling stolen property traditionally referred only to the physical property obtained in the course of the crime. Money laundering laws were initially developed in the 1970s to combat these crimes of tax evasion to prevent the transfer of funds through international bank accounts. The list of those responsible for anti-money laundering, AML, has expanded greatly from banks to include casinos, some insurance companies, car dealers, money transfer business, such as the Western Union, jewelers and pawn brokers; they are now all required be a part of the anti-money laundering system. The battle is global; agencies and institutions from countries all around the world work together to provide information to catch those responsible. The World Bank and the International Monetary Fund (IMF) are active in working with the United States under the 1998 Financial Action Task Force (FATF). The FATF and others monitor each nation to ensure that they remain in compliance with the AML agreements. The very nature of money laundering is elusive, making it difficult at best to track and investigate. For banks, limits are set on the amount of funds that can be transacted on any given day before the amount is reported to the Office of the Comptroller of Currency.