Professional Documents
Culture Documents
Presented by:
Junaid Naseem
--
Money laundering
•Metaphorically, money
laundering refers to
“cleaning on money”
Money laundering
• ‘MONEY LAUNDERING‘ refers to any activity that will
transform illegally gained or untaxed funds into legitimate
capital.
Statistics - Money Laundering
Kidnapping
for Ransom Extortion
Fraud
Bribery
Smuggling & Corruption
Criminal
Activities
Robbery,
Prostitution Dacoity
Mr.X is a dealer in
selling illegal firearms He then trades into
and has a buyer who
paid him in cash.
option from one of
Depositing huge cash these accounts and
would be difficult for from the proceeds
him, so what can he Layerin he buys a property ,
do? He sets up a real g thereby integrating
estate company and the money and
opens a bank account He then transfers making it legitimate
to deposit small the money to
amount of money so
not to raise suspicions many different
accounts in
various
Placement Integration
jurisdictions ( with
different names).
What is the aim of the
ML?
Placement
Layerin
To push the
money into the
dirty
g Integration
To disguise the origin
system through series
clean
of small banking of funds for funding To use the
transactions, so the property, multiple legitimate
moneyoptions)
accounts in different from (proceedsfor
to avoid
suspicions name set up. conducting legitimate
Objective is to hide transactions (buying
the audit trail of the a property)
transactions
Absence of
legislation
Evasion of tax
Increase in profits
To make black money
appear white money
Limited risks
of exposure
Absence of legislation against money
laundering:
Absence of legislation
against money laundering give
a free hand to criminals.
sometimes governments itself
is involved they do this to
win political rivals, to please
their allies and to strengthen
their rule.
Evasion of tax:
In 2010, the State Bank of Pakistan (SBP) passed the Anti-Money Laundering
Act. The Act thereby replaces the 2007 AML Ordinance.
The Financial Action Task Force (FATF) has given timeframe till June 2014 to
Pakistan to amend further the money laundering laws as well as Anti-Terrorism
Act to incorporate the content of the ordinance before the February 2014
meetings.
Mr. 10%
In 2003, a Swiss investigative magistrate decided he had evidence of
Zardari and Bhutto after pursuing a money trail from offshore companies in
the Caribbean to banks in Geneva to a jewelry shop here.
In his 2003 verdict, the Swiss judge connected Zardari to a chain of
corruption that began with two Swiss companies, Cotecna and SGS.
(Container inspection equipment)
As part of a secret deal, the judge found, the Swiss contractors funneled
$11.9 million in bribes into three offshore firms in the British Virgin
Islands and ultimately into bank accounts in Geneva.
The judge found that Zardari owned the third company, Bomer Finance,
which received about $8 million, and that “Bhutto shares with her
husband the assets” and “has power of disposition” over the company,
according to the documents.
Zardari is accused of using illicit funds to acquire the 365-acre
Rockwood estate, a $6.5-million property featuring a Tudor- style
mansion and two adjoining farms in the Surrey district.
In 1995, a leading French military contractor, Dassault Aviation,
agreed to pay Mr. Zardari and a Pakistani partner $200 million for a
$4 billion jet fighter deal that fell apart only when Ms. Bhutto’s
Government was dismissed.
In the largest single payment investigators have discovered, a gold
bullion dealer in the Middle East was shown to have deposited at
least $10 million into an account controlled by Mr. Zardari after the
Bhutto Government gave him a monopoly on gold imports that
sustained Pakistan’s jewelry industry.
In 1994 and 1995, he used a Swiss bank account and an American
Express card to buy jewelry worth $660,000 — including $246,000 at
Cartier Inc. and Bulgari Corp. in Beverly Hills, Calif., in barely a
month.
The case was initially registered in 2015 against former Pakistan
Stock Exchange (PSE) chairman Hussain Lawai, who is widely
believed to be close to former president Zardari.
Besides the ex-president and his sister, real estate tycoon Malik
Riaz’s son-in-law Zain Malik and 14 other bankers and
businessmen have been booked in the case pertaining to alleged
laundering of Rs4.14 billion through 29 ‘fake’ bank accounts,
while Hussain Lawai, Taha Raza, Anvar Majeed and Abdul Ghani
Majeed have been detained for their alleged involvement in
facilitating the transactions.
THE CASE OF THE KHANANI AND KALIA
FOREIGN EXCHANGE COMPANY
The Khanani and Kalia Company, in Pakistan, operated foreign currency exchange
and was involved in money laundering. Javed Khanani and Munaf Kalia were
arrested and handed over to the F.I.A.
Both were found guilty of illegally transferring around $10 billion out of Pakistan
and were charged according to the law by the F.I.A. upon the completion of
investigations
THE CASH SMUGGLING CASE OF AYYAN ALI