Money Laundering

Money Laundering

Introduction

To meet the requirements of this research report, the topic of money laundering has been selected. The concept of Money Laundering is as old as money itself which is normally used to conceal or make invisible the financial transactions or source of money that is obtained using illicit means. The main purpose of this research report is to select any category of money laundering and highlight the three phases in which money laundering takes place in that particular category, so that greater understanding regarding the concept could be attained. The three phases comprising the activity of money laundering includes phase characterized by moving the money from the direct association of the crime which is placement, phase characterized by disguising the money trail to avoid the authorities that could be called as layering and the last phase is making the money available again to the instigator - with little if any trace to the crime; the phase that could in short be characterized as integration. The methods used for the purpose of money laundering are diverse varying in sophistication however here, most common money laundering category will be explored that is the use of Shell Company (Braithwaite, 2001, pp. 25). It will subsequently be reflected upon with an example.

Discussion

Shell Company is basically defined as an incorporated company that is essentially formed and comes into operations for the purpose of money laundering. Thus, in real sense neither does it possess any asset nor is it involved in any real operations that could be considered as associated with value creation for customers. In order to indulge in money laundering, Shell Company usually offers such services to people in return of which or to obtain which people are most likely to pay through cash. Cash is the most preferred payment mode in ...