GLOBALIZATION AND MONEY LAUNDERING CRIME

Globalization and money laundering crime

Globalization and money laundering crime

A new era of globalization has emerged, and it is shrinking the world and shaping domestic politics and international relationships.(n1) Globalization involves the international integration of capital, technology, and information in a manner resulting in a single global market and, to some degree, a global village.(n2) This integration enables individuals and corporations to reach around the world farther, faster, deeper, and cheaper than ever before. However, the same aspects of globalization that have expanded opportunities for free-market capitalism also have resulted in new risks. Globalization has turned the international financial system into a money launderer's dream, siphoning off billions of dollars a year from economies around the world and extending the reach of organized crime. This unintended consequence of globalization presents a serious challenge to law enforcement agencies and financial regulators.

Because globalization comprises an overarching worldwide occurrence, the worldwide community's answer to the challenge impersonated by cash laundering has to address the economic, lawful, and enforcement issues in a universal kind, through harmonization of remedies. Understanding the global risk of money laundering and the worldwide community's answer will aid examiners pursuing the evidentiary trail of a launderer by recognising the enforcement tools and techniques developed to overwhelm obstacles came across when crossing worldwide boundaries.

WHAT IS MONEY LAUNDERING?

Generally, money laundering is "the process by which one conceals the existence, illegal source, or illegal application of income and then disguises that income to make it appear legitimate."(n3) In other words, the process used by criminals through which they make "dirty" money appear "clean." Though initially considered an aspect integral to only drug trafficking, laundering represents a necessary step in almost every criminal activity that yields profits.

Criminals enlist in cash laundering for three reasons. First, cash represents the lifeblood of the organization that enlists in lawless person conduct for financial gain because it wrappings functioning costs, replaces inventories, buys the services of corrupt officials to escape detection and further the interests of the illicit enterprise, and buys for an extravagant lifestyle. To spend cash in these ways, lawless persons must make the cash they derived illegally emerge legitimate. Second, a trail of cash from an infringement to criminals can become incriminating evidence. Criminals should obscure or conceal the source of their wealth or on the other hand disguise ownership or command to double-check that illicit advances are not utilised to prosecute them. Third, the advances from misdeed often become the goal of investigation and seizure. To shield ill-gotten gains from doubt and defend them from seizure, criminals should conceal their existence or, on the other hand, make them look legitimate.

Money laundering comprises of a three-stage process. The first stage involves the placement of advances derived from illicit activities--the action of advances, often currency--from the view of the misdeed to a location, or into a pattern, less doubtful and more convenient for the criminal. For example, a government authorized may take a bribe in the pattern of money and location it in a safe deposit carton or bank account opened under the title ...