Home Business Top Questions People Have About Money Laundering

Top Questions People Have About Money Laundering

Money laundering is a common term used to describe the ways offenders hide the sources of their riches. In other words, proceeds that have been made through criminal activities are hidden so that they seem to come from legitimate channels. Therefore, the crime of laundering money is committed when you are engaged in activities that involve proceeds of criminal involvement. In this article, you will find the top questions people have about money laundering.

Is deviance effective at predicting money laundering?

Ordinarily, differences in the definition of the term laundering can be assessed in diverse ways. Sometimes, the extent of involvement in the offense is considered a sufficient predictor of money laundering. Here is a context; some authorities regard money laundering as an offense that draws at least a one year in jail term. In other instances, an appropriate solution will arise from the meaning of an offense embedded within anti laundering laws. If you are charged with money laundering, you should consider enlisting the services of a financial offenses lawyer. Such a professional can enlighten you on the different situations that warrant being charged of this crime.

So why is money laundering prohibited around the world?

Well, the purpose of money laundering is to benefit from criminal activities. The reasoning here is that it is not right for organizations or individuals to assist offenders gain and benefit from profits that are accrued through unlawful acts or facilitate such activities by providing monetary services.

Fine, it’s prohibited, but why is it illegal?

Look at it this way, for money to be laundered, it needs to be transferred from an illegal venture to legitimate channels so that its illegal sources remain hidden. Based on national laws, money laundering takes place when organizations or individuals hide sources, places, nature or the possession and management of profit from illegal activities. In essence, the reason why money is laundered is to conceal its sources. Offenders become expert in misdirection with regards to the source of their money or concealing their actual wealth or income.

What are examples of money laundering?

Money laundering ranges from obvious to much more complex strategies and usually include;

Smuggling – smuggling often involves quietly sneaking money into another country and depositing it in tax havens with less rigorous money laundering rules.

Structuring – structuring is taking small sums of cash and piling them up in deposit boxes, and then purchasing bearer mechanisms, which usually included money orders.

Trusts and shell corporations – these business structures are used to disguise the owners of the money. Shell corporations and trusts are not obligated to reveal true owners of assets.

What punishment does money laundering attract?

Since money laundering is an intentional act, it is subject to international and national laws. The elements that make up the offense of laundering money usually include:

  • Intentionally taking part in financial trade
  • With profits from criminal activities
  • For the sole reason of hiding the illegal sources of property or laundered money from the authorities.

Punishment for taking part in laundering money usually involves confiscation of assets and money as well as a fine and jail term or simply imprisonment.

Wrap Up

Laundering money is a serious offense. If you or somebody else you know is indicted of laundering money, it is best to seek legal redress as soon as possible. Seek the services of a counsel so that you minimalize the consequence of criminal sanctions or to face the charges.

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