money laundering (concealing the source of illegally gotten money) Definition of 'Anti Money Laundering - AML' : A set of procedures

, laws or regulations designed to stop the practice of genera ting income through illegal actions. In most cases money launderers hide their a ctions through a series of steps that make it look like money coming from illega l or unethical sources was earned legitimately. (Definition) Legitimate : Acceptable or recognized as genuine, valid, or conforming to established codes, customs, rules, or standards of conduct. See also lawful and legal. Investopedia explains 'Anti Money Laundering - AML': Though anti-money-laundering laws cover only a relatively limited number of tran sactions and criminal behaviors, their implications are extremely far reaching. An example of AML regulations are those that require institutions issuing credit or allowing customers open accounts to complete a number of due-diligence proce dures to ensure that these institutions are not aiding in money-laundering activ ities. The onus to perform these procedures is on the institutions, not the crim inals or the government. (Definition)Onus : Burden, necessity, obligation, or responsibility, especially a distasteful one. Identity Theft: How To Avoid It At the Corporate Level Thieves make headlines when they break into large consumer databases and steal h undreds or thousands of names, but that's not the only way identity theft occurs on a corporate level. It can occur also from the inside. Insiders may use an em ployer's access to credit reporting information to get a hold of confidential pe rsonal data, or steal information directly from the employer's files or trash. E mployees can also be conned or bribed by an outsider to obtain information. Money laundering often occurs in three steps: first, cash is introduced into the financial system by some means ("placement"); the second involves carrying out complex financial transactions in order to camouflage the illegal source ("layer ing"); and, the final step entails acquiring wealth generated from the transacti ons of the illicit funds ("integration"). Some of these steps may be omitted, de pending on the circumstances; for example, non-cash proceeds that are already in the financial system would have no need for placement.[2] Money laundering takes several different forms, although most methods can be cat egorized into one of a few types. These include "bank methods, smurfing [also kn own as structuring], currency exchanges, and double-invoicing".[3] Structuring: Often known as "smurfing", is a method of placement by which cash i s broken into smaller deposits of money, used to defeat suspicion of money laund ering and to avoid anti-money laundering reporting requirements. A sub-component of this is to use smaller amounts of cash to purchase bearer instruments, such as money orders, and then ultimately deposit those, again in small amounts.[4] Bulk cash smuggling: Physically smuggling cash to another jurisdiction, where it will be deposited in a financial institution, such as an offshore bank, with gr eater bank secrecy or less rigorous money laundering enforcement.[5] Cash-intensive businesses: A business typically involved in receiving cash will use its accounts to deposit both legitimate and criminally derived cash, claimin g all of it as legitimate earnings. Best suited is a service business. As such b usiness has no variable costs, it is hard to detect revenues-costs discrepancies . Examples are parking buildings, strip clubs, tanning beds or a casino. Trade-based laundering: Under- or over-valuing invoices in order to disguise the

Black cash might be used to pay them.[8] Fictional loans .[6] Shell companies and trusts: Trusts and shell companies disguise the true owner o f money. the seller will agree to a contract that under-represents the value of the property. preferably in a jurisdiction with weak money laundering controls. the price of the property is manipulated. and then mov e money through the bank without scrutiny. and then shipped back as a Foreign Direct Investment. The proceeds from the sale appear to outsiders to be legitimate income. then sold. Casinos: An individual will walk into a casino with cash and buy chips.[5] Real estate: Real estate may be purchased with illegal proceeds. play for a while and then cash in his or her chips. The money launderer will then be able to deposit the check into his or h er bank account. and will receive criminal proc eeds to make up the difference. Bank capture: Money launderers or criminals buy a controlling interest in a bank . Alternativel y. need not disclose their true. and claim it as gambling winnings. Trusts and corporate vehicles.[7] Round-tripping: Money is deposited in a controlled foreign corporation offshore. beneficial. exempt from taxation.[7] Black salaries: Companies might have unregistered employees without a written co ntract who are given cash salaries. owner.movement of money. depending on the jurisdiction. preferably in a tax haven where minimal records are kept. for which he or she will be issued a check.