scholarly journals The meaning of money laundering in business life and prevention of it

2014 ◽  
Vol 8 (2) ◽  
pp. 106-108
Author(s):  
Anikó Türkössy
Keyword(s):  
Money Laundering ◽  
Drug Trafficking ◽  
Tax Evasion ◽  
Financial Services ◽  
Task Force ◽  
Criminal Activity ◽  
Political Life ◽  
Sudden Increase ◽  
Select Committee ◽  
The World

Money laundering is the process whereby the proceeds of crime are transformed into ostensibly legitimate money or other assets. The actuality of the subject derives from the Select Committee on the Evaluation of Anti Money Laundering Measures aided by the Financial Action Task Force. Money obtained from certain crimes, such as extortion, drug trafficking, illegal gambling and tax evasion trough off shore companies as "dirty". The reason of the Committee program is to give aides to those countries which wore not FATF members as money laundering is the most profit yielding business on the world with it’s 2800 milliard USD turnover. This organization controls Hungary by supervising the law and overall actions giving a so called Progress Report about the achievements. In aspect of criminal affairs Money laundering includes all activities which achieve to transform the origin of funds coming from criminal activity as well as tax evasion activity into a legalized form. Money laundering as a phenomenon became a global problem in the second half of the 20th century parallel to sudden increase of drug trafficking. In the past few decades money laundering and the chain of criminal activities as underlying offences got into the scope of the leading economic states. Those activities of money laundering maximally exploit the free movement of capital and financial services. In both the economy and political life there is a need for having laws and regulations against money laundering which rigorously regulate the different financial, bank supervisory activities. According to estimations in the nineties three hundred billion dollars were circulating annually across the world in order to be laundered. Nowadays this figure is well over thousand billion dollars.

Tax evasion and money laundering: a complete framework

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Deen Kemsley ◽  
Sean A. Kemsley ◽  
Frank T. Morgan
Keyword(s):  
Money Laundering ◽  
Tax Evasion ◽  
Task Force ◽  
Regulatory Agencies ◽  
Content Type ◽  
Single Process ◽  
Financial Action Task ◽  
Tax Savings ◽  
Practical Implications ◽  
Complete Framework

Purpose This paper aims to define the fundamental nexus between income tax evasion and money laundering. The G7 Financial Action Task Force (FATF) designates tax evasion as a predicate offense for money laundering. We determine whether this designation is complete from a conceptual standpoint, or whether there is a stronger connection between tax evasion and money laundering. Design/methodology/approach This paper applies the FATF definition for money laundering – as well as generally accepted definitions for tax evasion and for a standard predicate offense – to identify the necessary conditions for each crime. This paper then uses these conditions to test opposing hypotheses regarding the nexus between tax evasion and money laundering. Findings This paper demonstrates that tax evasion does not meet the conditions for a standard predicate offense, and treating it as if it were a standard predicate could be problematic in practice. Instead, it is concluded that the FATF’s predicate label for tax evasion, together with tax evasion methods and objectives, imply that all tax evasion constitutes money laundering. In a single process, tax evasion generates both criminal tax savings and launders those criminal proceeds by concealing or disguising their unlawful origin. Practical implications The FATF could strengthen its framework by explicitly defining all tax evasion as money laundering. This would enable regulatory agencies to draw upon the full combined resources dedicated to either offense. Originality/value The analysis demonstrates that tax evasion completely incorporates money laundering as currently defined by the FATF.

Blockchain Technology and General Issue of Tax Evasion via Bitcoin

2021 ◽  
pp. 92-108
Author(s):  
Güneş Çetin Gerger
Keyword(s):  
Supply Chain ◽  
Money Laundering ◽  
Tax Evasion ◽  
Market Value ◽  
Financial Fraud ◽  
Terrorist Financing ◽  
Blockchain Technology ◽  
The World ◽  
Financial Transactions ◽  
Digital Assets

Cryptocurrencies often also serve money laundering activities, terrorist financing, tax evasion, and other illegitimate activities with a market value of more than 7 billion euros across the globe, though the total amount is hardly measurable. Indeed, the blockchain technology involves many virtual currencies, including bitcoin, to conduct various financial transactions related practices throughout the world economies. Besides, other blockchain applications are making positive contributions to a wide array of other industries including healthcare, supply chain, manufacturing, etc. This technology which constitutes the backbone of digital assets transactions currencies is characterized by anonymity, privacy, security, and speed. In this sense, for tax administration authorities, detection of financial fraud and regulations with respect to taxation of virtual transactions pose newer emerging challenges. This chapter aims to examine the blockchain technology, cryptocurrencies, especially bitcoin, and look into regulations by world governments to combat tax evasion and illegal transactions.

Policies could damage Tanzania’s strong growth trend

2017 ◽  
Keyword(s):  
Tax Evasion ◽  
Financial Services ◽  
Growth Trend ◽  
Sharp Drop ◽  
Content Type ◽  
Doing Business ◽  
The World ◽  
Ease Of Doing Business ◽  
Tourism Revenue ◽  
Growing Population

Significance The World Bank’s 2017 Ease of Doing Business ranking shows Tanzania improving, moving up to 132nd place from 144 last year. However, an austerity drive and a crackdown on tax evasion may undermine progress. Businesses have shuttered since President John Magufuli took office, and commercial retrenchment could dampen key growth sectors including construction, telecoms and financial services. Impacts A fast-growing population of 53 million will add to an already large consumer base. A sharp drop in tourism revenue could prompt a review of taxation on the sector. Natural gas discoveries could boost revenue, but exports will only begin in the next decade.

International cooperation in the investigation of economic crimes related to cryptocurrency circulation

2021 ◽  
Vol 39 (6) ◽  
Author(s):  
Oleh Kreminskyi ◽  
Olena Kuzmenko ◽  
Anastasiia Antoniuk ◽  
Olha Smahlo
Keyword(s):  
International Cooperation ◽  
Money Laundering ◽  
Task Force ◽  
Criminal Activity ◽  
International Community ◽  
Economic Crime ◽  
Global Level ◽  
Financial Action Task ◽  
Illegal Activities ◽  
Economic Crimes

The cross-border nature of transactions with virtual currencies and the use of anonymity technologies exacerbates the difficulties in investigating economic crimes. The purpose of the article was to study the effects of international cooperation in the investigation of economic crimes related to the circulation of cryptocurrency. The research methodology is based on the method of content analysis of reports, recommendations and standards of the FATF (Financial Action Task Force) for 2012-2020, as a leading international organization for the prevention and development of policies for the regulation of economic crimes related to the circulation of cryptocurrencies. The results demonstrate the following effects of international cooperation in the investigation of economic crimes related to cryptocurrency: 1) the need to use a risk-oriented approach of the international community at the global level, coordination of government efforts to prevent economic crimes; 2) formation of a network of organizations that provides an effective balance between existing threats and opportunities for cryptocurrency circulation; 3) the development of free, decentralized management networks at the global level, which is an innovative and effective way to combat criminal activity, compared to traditional centralized forms of coercion in an era of rapid and unpredictable technological change. The considered experience of the absence of regulatory acts of cryptocurrency circulation and taxation of virtual assets on the principle of traditional assets indicates the absence of concern about illegal activities and possible economic crimes in this area. At the same time, decentralized and quasi-autonomous virtual assets could potentially threaten years of global anti-money laundering efforts. There is a “race” in the international community for leadership in combating economic crime. However, such efforts to establish legitimate jurisdictions that meet the requirements of the AML (Anti-Money Laundering) provide few measures in practice to counter and limit the opportunities for money laundering in other jurisdictions.

scholarly journals THE IDENTIFICATION OF MONEY LAUNDERING ON DRUG TRAFFICKING

2020 ◽  
Vol 5 (1) ◽  
pp. 68
Author(s):  
Lucky Nurhadiyanto
Keyword(s):  
Law Enforcement ◽  
Money Laundering ◽  
Drug Trafficking ◽  
Financial Services ◽  
Main Chain ◽  
Minimal Risk ◽  
Integration Pattern ◽  
The One ◽  
Financial Transactions

Drug trafficking is a holistic process. The involvement of various parties linked with law enforcement efforts. The number of drug trade reaches millilons of tons. This number equivalent to billions of fund that circulating in trading transactions. The one alternative ways to eradicate drug trafficking is to track the cash flow. Because of the financial transactions as the main chain to running this business. Tracking the flow of drug trafficking funds through money laundering approach can be done by indetifying various placement, layering, and integration activities of suspicious financial transactions. The placement pattern becomes the entrance of financial transactions through the participation of the providers of financial services. The layering pattern can consist od smurfing, money changer, and buying a stock portofolio. Meanwhile, the integration pattern enters various business activities with minimal risk. The prediction of money laundering tren based on drug trafficking leads three aspects, that is utilization of technologies, the role of third parties, and the involvement of unscrupulous government and law enforcement.

scholarly journals Money Laundering: An Overview

2012 ◽  
Vol 1 (2) ◽  
pp. 120-127
Author(s):  
Deepa Joshi ◽  
Ashutosh Vyas ◽  
Ms. Megha Joshi
Keyword(s):  
Political Parties ◽  
Money Laundering ◽  
Tax Evasion ◽  
Financial Institution ◽  
Criminal Activity ◽  
Root Cause ◽  
Classification Code ◽  
Proceeds Of Crime ◽  
Recent Activity ◽  
Financial Transactions

Money laundering is generally regarded as the practice of engaging in financial transactions to conceal the identity, source, and/or destination of illegally gained money by which the proceeds of crime are converted into assets which appear to have a legitimate origin. In other words, Money Laundering refers to the conversion or "Laundering" of money which is illegally obtained, so as to make it appear to originate from a legitimate source. The recent activity in money laundering in India is through political parties’ corporate companies and share market. Bank fraud is a serious financial crime that involves the unlawful obtainment of funds from a bank or other financial institution. Money is the root cause of many evils like corruption, black marketing, smuggling, drug trafficking, tax evasion, and the buck does not stop here. While carrying out the Know your Client (KYC) norms, special care has to be exercised to ensure that the contracts are not anonymous or under fictitious names. Money is the prime reason for engaging in almost any type of criminal activity .Money laundering is the method by which criminals disguise the illegal origins of their wealth. GEL Classification Code: E49; E50; P44

scholarly journals Technology as a Tool for Transnational Organized Crime

2021 ◽  
Vol 4 (1) ◽  
pp. 112-121
Author(s):  
Gurpreet Tung
Keyword(s):  
Money Laundering ◽  
Organized Crime ◽  
Criminal Activity ◽  
The Internet ◽  
Complex World ◽  
Criminal Networks ◽  
Transnational Organized Crime ◽  
The World

Using technology to commit crimes is becoming much more prevalent. The internet has provided organized criminal entities anonymity and accessibility to criminal networks across the world to expand their illicit businesses. Technology is allowing for different organizations to co-exist and assist one another to achieve their goals. Organized crime entities are not only utilizing cyberspaces to communicate with networks across the globe but are also utilizing these spaces to aid in money laundering. Money laundering processes have begun to move online to better obscure assets in relation to criminal activity. Therefore, technology is creating a more dynamic and complex world to combat organized crime.

Recent trends in money laundering and terrorism financing

2019 ◽  
Vol 27 (1) ◽  
pp. 2-12 ◽  
Author(s):  
Fabian Maximilian Teichmann
Keyword(s):  
Money Laundering ◽  
Financial Services ◽  
White Collar Crime ◽  
Qualitative Content Analysis ◽  
Criminal Activity ◽  
Content Type ◽  
Compliance Officers ◽  
Terrorism Financing ◽  
Prior Literature ◽  
Recent Trends

Purpose This paper aims to investigate how criminals launder money and finance terrorism through the financial system. Design/methodology/approach In total, 70 interviews were conducted with criminals and white-collar crime prevention experts, whose responses were subjected to qualitative content analysis. Based on the findings, a quantitative survey of 200 compliance officers was carried out. Findings The interviews and survey revealed concrete techniques of laundering money and financing terrorism through the financial services industry and its affiliates. Evidently, the compliance mechanisms aimed at preventing money laundering and terrorism financing can be easily circumvented. Research limitations/implications This study’s findings are limited to the perspectives of 70 interviewees. Hence, it is possible that a study with a larger sample conducted in different countries or at a different time could have yielded different results. Practical implications Identifying the concrete methods of laundering money and financing terrorism should provide both compliance officers and legislators with valuable insights into criminal activity. By better understanding the specific steps taken by criminals, compliance officers should be able to more effectively combat both money laundering and terrorism financing. Originality/value While prior literature focuses on the organizations and mechanisms involved in combating money laundering and terrorism financing, this paper instead explores how criminals avoid detection by taking into account existing compliance mechanisms and criminal perspectives.

scholarly journals Using of insurance companies ‘services for the purpose of legalization of criminal income of economic agents and avoidance of taxation

2020 ◽  
pp. 199-210
Author(s):  
Serhii Lyeonov ◽  
Olha Kuzmenko ◽  
Serhii Mynenko ◽  
Oleksii Lyulyov
Keyword(s):  
Money Laundering ◽  
Life Insurance ◽  
Tax Evasion ◽  
Financial Services ◽  
Financial System ◽  
Insurance Companies ◽  
Quantitative Characterization ◽  
Economic Agents ◽  
General Insurance

Annotation. Providing the stable and continuous functioning of the financial services market is one of the important areas of state economic policy. Without the use of financial intermediaries, the economy cannot function. Criminals, in turn, use the weaknesses of the country’s financial system for their own illicit enrichment or the pursuit of other criminal interests. By laundering illegally obtained money, criminals destabilize the country’s financial system and expand the size of the shadow economy. The purpose of the article is to characterize the possibility of using the services of insurance companies in order to legalize the criminal income of economic agents and tax evasion by enterprises. Results. The article identifies the risk of using the services of insurance companies to legalize illegally obtained income and the place of these services in the market. The study comprehensively considered the possibility of fraudsters using the services of insurance companies to launder the illegal income of economic agents and tax evasion by enterprises. Examples of legalization of illegal income through the services of insurance companies were given. There are three main groups of insurance companies’ services: general insurance, life insurance (pension or insurance for investments), and reinsurance. The main risks associated with money laundering are inherent in each group of services. Summarizing the analysis, general recommendations for insurance companies to prevent money laundering through their services were identified. The prospects for further research. The Prospects for further research are the quantitative characterization of the risk of legalization of criminal income of economic agents and tax evasion for each group of services, as they have their own specific features.

scholarly journals Tackling of Corruption in India by Recently Enacted Penal Laws

2021 ◽  
Vol 7 (3) ◽  
pp. 297-316
Author(s):  
Pradeep Kumar Singh
Keyword(s):  
Money Laundering ◽  
Tax Evasion ◽  
Justice System ◽  
Paper Analysis ◽  
Development Economic ◽  
Legal Regime ◽  
Public Servants ◽  
World Community ◽  
Infrastructural Development ◽  
The World

Corruption is not only a crime but also a serious social problem which further begets many other problems like black money, black market, money laundering etc. Corruption affects infrastructural development, economic growth, prosperity of nation and ultimately erodes public faith in law, government, governmental policies and governance. In this era of globalization, and science and technology, anything happening in one nation affects all other nations and persons throughout world. When in one nation public servants commit corruption and they have corrupt mentality; such situation affects not only the nation concerned but also the world community. It is always important requisite that the legal regime to tackle problem of corruption has to be reviewed and amended to suit the requirements of criminal justice system. In India recently legal regime relating to corruption has been amended for effective tackling of corruption and corruption related problems. In this paper analysis will be made regarding effectiveness of recently enacted laws to deal with corruption. Keywords: Benami property; Black money; Corruption; Confiscation; Criminalisation; Money laundering; Society; Tax evasion.

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