MONEY

LAUNDERING

Kushagra Agrawal
H003
SUBTOPICS
Introduction
Causes Of Money
Laundering
Stages Of Money
Laundering

 Introduction
Meaning
The word "laundry" literally means "cleaning".
Metaphorically, money laundering refers to "cleaning of money".

Definiton
Money laundering is the illegal process of making large amounts of
money generated by criminal activity, such as drug trafficking or
terrorist funding, appear to have come from a legitimate source.

 History
From as early as 2000 BC, wealthy Chinese merchants would
move their profits outside of China, as the government did not
support commercial trading.
Prior to the 1980s, money laundering was barely considered a
crime; tax evasion was the more serious offense.
Money Laundering as a crime only attracted interest in the
1980's, essentially within a drug trafficking context.
Terrorist financing, although only one aspect of money
laundering, has become a critical concern following the events of
September 11, 2001.
 How Much Money is Laundered
Every Year
Since money laundering is an illegal activity therefore one can
only estimate the amount of money laudered every year.

The International Monetary Fund, for example, had stated in

1996 that the aggregate size of money laudered every year is
some where between 2-5% of the world's GDP.

The is $800 billion - $2 trillion in current US dollars.

 Causes Of
Money Laundering

Absence of legislation

Evasion of tax

Increase in profits

To make black money appear

white money

Limited risk of exposures

 Stages Of Money
Laundering

PLACEMENT LAYERING INTEGRATION

Dirty money is Illegal funds are Money re-enters the
introduced into the moved around to legitimate economy
financial system. disguise their origin. through 'clean'
investments.