Definition of Money Laundering

Money laundering:
The word “laundry” literally means
“cleaning” Metaphorically, money
laundering refers to "cleaning on
money”
 The Structure of
Money Laundering
How does Money
Laundering works?
 Money Is the prime reason for
engaging in almost any types of
criminal activity. It is a method by
which criminals disguise the illegal
origins of their wealth and protect
their asset bases, so as to avoid
the suspicion of law enforcement
agencies and prevent leaving a
trial of incriminating evidence.
 Terrorists and terrorist organizations
also rely money to sustain themselves
and to carry out terrorist act. Money for
terrorist is derived from a wide variety of
sources. While terrorists are not greatly
concerned with disguising the origin of
money, they are concerned with
concealing its destination and a
purpose for which it has been collected.
Terrorist and terrorist organizations
therefore employ techniques similar to
those use by money launderers to hide
their money.
 The ability to prevent and detect money-laundering
is a highly effective means of identifying criminals and
terrorist and the underlying activity from which money Is
derived. The application of intelligence and investigative
techniques can be one way of detecting and disrupting
activities terrorist organizations.
Because they deal with other peoples money,
financial institutions rely on a reputation probity and
integrity. A financial institutions found to have assisted in
laundering money will be shunned by legitimate
enterprises. An international financial center that is used for
money-laundering can become an ideal financial haven.
Developing countries that attacked “dirty money” as a
short-term engine of growth can find it difficult, as a
consequence, to attacked the kind of solid long-term
foreign direct investment that is based on stable conditions
and good governance, and that can help them sustain
development promote long-term growth.
 Most disturbing of all, money-laundering
fuels corruption and organized crime. Corrupt
public officials made to be able to launder
bribers, kick-backs, public funds and, on
occasion, even development loans from
international financial institutions. Organized
criminal groups need to be able to launder the
process of drug trafficking and commodity
smuggling. Terrorist group use money-laundering
channels to get cash, to buy arms. The social
consequences of allowing this groups to launder
money can be disastrous. Taking the proceeds of
crimes from corrupt public officials, traffickers and
organized crime groups is one of the best way to
stop criminals in their tracks.
In recent years, the international
community has become more aware of
the dangers that money laundering poses
in all this areas and many governments
and many jurisdictions have committed
themselves to taking actions. The united
nations and other international
organizations are committed to helping
them in any way they can.
Criminals are now taking advantage
of the globalization of the world economy
by transferring funds quickly across
international boarders.
 Money laundering includes:

*Drug Trafficking
*Extortion
*Fraud
*Corruption
THREE STAGES OF PROCESS
 The money-laundering threat in the
country has been classified as “high” with
the threat posed by drug trafficking rated
the highest among predicate crimes, a
government report showed.
According to “the first national risk
assesment on money laundering and
‘terrorism financing” report posted on the
anti-money laundering council’s (AMLC)
website, a self-assessment by Philippines
authorities using 2011-2014 data showed
that “National Money Laundering is
assessed to be high.”
Early this year, the Philippines was trust
into the global lime light by the
cyberheist involving the theft 81 US $
million from the central bank of the
Bangladesh.
Hackers reportedly from China tried
to steal $1 billion from the Bangladesh
central bank’s account at the federal
Reserve bank of New York last february
and succeded in transferring $81 billion
to four accountat Rizal Commercial
Banking Corps branck in jupiter
LAWS RELATED
 The Money Laundering Control Act of 1986

(Public Law 99-570) is a United States Act of

Congress that made money laundering a federal crime. It was
passed in 1986. It consists of two sections, 18 U.S.C. § 1956 and 18
U.S.C. § 1957. It for the first time in the United States criminalized
money laundering. Section 1956 prohibits individuals from
engaging in a financial transaction with proceeds that were
generated from certain specific crimes, known as “specified
unlawful activities” (SUAs). Additionally, the law requires that an
individual specifically intend in making the transaction to conceal
the source, ownership or control of the funds. There is no minimum
threshold of money, nor is there the requirement that the
transaction succeed in actually disguising the money. Moreover,
a “financial transaction” has been broadly defined, and need not
involve a financial institution, or even a business. Merely passing
money from one person to another, so long as it is done with the
intent to disguise the source, ownership, location or control of the
money, has been deemed a financial transaction under the law.
Section 1957 prohibits spending in excess of $10,000 derived from
an SUA, regardless of whether the individual wishes to disguise it.
This carries a lesser penalty than money laundering, and unlike the
money laundering statute, requires that the money pass through
a financial institution.
An act defining the crime of money laundering providing
penalties therefore for other purposes.

Section 1. Short title – This act shall be known as the “Anti-

Money laundering Act of 2001.”
Section 2. Declaration of Policy. – It I hereby declared
the policy of the State to protect and preserve the
integrity and confidentially of bank accounts and to
ensure that the Philippines shall not be used as a money
laundering site for the proceeds of unlawful activity.
Consistent with it foreign policy. The state shall extend
cooperation in transnational investigations and
prosecutions of person involved in money laundering
activities wherever committed.
RECOMMENDATIONS
CONCLUSION
 The purpose of this study is to analyze the
development of anti-money laundering regime in
responding to the progress of money laundering
practices. It examines the internationalization
criminalization of money laundering through the
creation of international standards on the basic
principles of sovereignty, jurisdiction, and law
enforcement, and the negative implication that
exacerbate the effectiveness in implementing and
enforcing money laundering laws and regulation. A
wide array of theories , state practices, and opinion
of jurists are used to uncover the conceptual as well
as practical challenges in countering money
laundering practices. This chapter provides
conclusions to the study and introduces
recommendations for policymakers and possible
future research.
THANK YOU!

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