The aim of this work is to provide sufficient information on the most significant key facts of money laundering and the negative impact of terrorism and organised crime on economy, companies, and society. To provide essential basics, the project will begin with the origin and definitions of the terms "money laundering" (ML) and "terrorist financing" (TF), and the differences between the two terms.
Additionally, the most relevant legislations and law enforcement units addressing the issue will be demonstrated. Because of the complexity of local rules, regulations, and legislations, it will be focussed on global and European standards. The money laundering circle including its different phases will be stated as well as alternative modernised models as potential future ML or TF mechanisms such as the use of cryptocurrencies. These are covered in the second chapter.
The third chapter will demonstrate the initiators and facilitators in the money laundering mechanism. The part of the initiators will be represented in this context by major transnational organised crime syndicates and terrorist groups to illustrate how initiators may look like, what objectives they have, how they operate, why money laundering is so essential to their future actions as well as how dangerous their existence is to our society.
On the other hand, facilitators will involve different parties such as the role of banks, specific organisations, states, or offshore locations. It will additionally highlight how these parties benefit from money laundering and why it is such an attractive model to provide initiators with assistance services.
By using real case scenarios and data of the most relevant reports, it will be emphasised in the fourth chapter what negative impact money laundering can have on the economy, society, and companies.
The fifth chapter involves a comprehensive guidance on the prevention of ML including TF for corporate entities with respect to chapter 2.2, which introduced Anti Money Laundering (AML) and Counter Financing of Terrorism (CFT) legislations and several other recommendations by law enforcement units, policy makers, and AML/CFT professionals. It will cover significant mechanisms such as risk assessments, Compliance tools, Corporate Governance, Customer Due Diligence, Know Your Customer Principles, and several other preventive measures. The research project finishes with a conclusion.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- What is money laundering and where does it come from?
- The origin and history of money laundering
- International legislations and policy-makers
- Law enforcement agencies and competent authorities
- The money laundering circle
- Placement
- Layering
- Integration
- The role of cryptocurrencies
- The Differences between Money Laundering & Terrorist Financing
- Who is involved?
- Initiators
- Definitions of transnational organised crime
- Major transnational organised crime groups
- Definitions of terrorism and terrorist groups
- Major terrorist groups
- Facilitators
- States and offshore locations
- Banks
- Underground, shell, and shadow banks
- Shell corporations and front organisations
- Why does Money Laundering have such a relevance?
- Facts and figures
- The Impact of money laundering and terrorist financing
- Impact on companies
- Economic impact
- Impact on state and society
- Conclusion on Responsibilities
- How can money laundering be prevented?
- Guidance and international standards
- Risk Assessment
- Corporate Governance & Compliance
- The Role of the Money Laundering Reporting Officer
- Preventive measures for money laundering
- Awareness and training of staff
- Customer Due Diligence
- Record keeping and reporting
- Research and Monitoring
- AML Software tools and data-analytics
- Whistleblowing-systems
- Conclusion on measurement
- Conclusion
- References
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This research project examines the term 'money laundering' and its impact on organised crime and terrorism, focusing on its implications for both national economies and corporate entities. It aims to highlight the significant negative effects of financial crime on both economy and society, while simultaneously exploring strategies for the prevention of money laundering. The ultimate goal is to provide a comprehensive guide to anti-money laundering tools, aimed at preventing money laundering and terrorist financing within corporate entities and disrupting the activities of organised crime and terrorist groups. This guide is tailored to address the most relevant issues and trends of money laundering.
- The nature and history of money laundering
- The impact of money laundering on organized crime and terrorism
- Strategies and tools for preventing money laundering
- The role of corporate entities in combatting financial crime
- The importance of international collaboration and cooperation
Zusammenfassung der Kapitel (Chapter Summaries)
The first chapter provides an introduction to the topic of money laundering, its origins, and its impact on various sectors. It explores the evolution of money laundering practices, examines the historical context, and highlights the key legal frameworks and international policies aimed at combating it. The chapter delves into the concept of the money laundering cycle, outlining the three main stages of placement, layering, and integration, as well as the role of cryptocurrencies in facilitating these processes. It concludes with a discussion on the differences between money laundering and terrorist financing.
Chapter 3 delves into the various actors involved in money laundering activities. It categorizes these actors into initiators and facilitators. Initiators are defined as those entities that generate the illicit funds that are subsequently laundered, such as transnational organized crime groups and terrorist organizations. The chapter explores the characteristics, motivations, and methods of these groups. Facilitators, on the other hand, provide the means and infrastructure for laundering the illicit proceeds. This includes states and offshore locations, banks, underground financial systems, and shell corporations.
Chapter 4 investigates the significant relevance of money laundering, exploring the far-reaching consequences of this financial crime. The chapter presents alarming facts and figures illustrating the scale and scope of the problem. It analyzes the detrimental impact of money laundering and terrorist financing on companies, economies, and societies at large. The chapter concludes with a reflection on the collective responsibility to address this issue.
The final section focuses on how money laundering can be prevented. The chapter emphasizes the importance of guidance and international standards in shaping anti-money laundering strategies. It examines the role of risk assessment and corporate governance in mitigating vulnerabilities and creating a robust framework for compliance. The chapter delves into the critical role of the Money Laundering Reporting Officer and outlines a range of preventive measures, including awareness and training of staff, customer due diligence, record keeping and reporting, research and monitoring, and the use of AML software tools and data analytics.
Schlüsselwörter (Keywords)
The primary keywords and focus topics of this project include money laundering, organized crime, terrorism, financial crime, anti-money laundering, risk assessment, corporate governance, compliance, international standards, and terrorist financing. The project explores the detrimental impact of money laundering on economies, societies, and corporate entities, while simultaneously emphasizing the importance of effective prevention strategies and the collaborative efforts required to combat this global challenge.
- Quote paper
- Mick Still (Author), 2018, The Impact of Money Laundering on Organised Crime and Terrorism, Munich, GRIN Verlag, https://www.grin.com/document/497999
