MONEY-LAUNDERING

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6/1/2016

SUBMITTED-TOIMRAN-HASANLECTURERBUSINESS-ADMINISTRATIONSOUTHERN-UNIVERSITY-BANGLADESH

SUBMITTED-BY.MD.TASRIF-MASRUF.111-43-255.BBA.SUB.

WHAT-IS-MONEY-LAUNDERING?

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MONEY-LAUNDERING-MEANS-ILLEGAL-BLACK-MONEY-MAKING-WHITE-THROUGH-A-PROCESS.

USUALLY-SMUGGLER-BLACKBUSINESSMAN-DO-MONEY-LAUNDERING.BUSINESS-USUALLY-GOLD,FOREIGN-CURRENCY-RESERVATION,DIAMOND,COACAIN-BUSINESS-ETC-CALLED-BLACK-MONEY.

LAUNDERING-IS-A-DIVERT-WORD-FROM-LAUNDRY-MONEY-LAUNDERING-MEANS-BLACK-MONEY-LAUNDER-OR-WASH-THROUGH-A-PROCESS-AND-MAKE-IT-WHITE.ACCORDING-MR.JEFFREY-ROBBINSON-AFTER-FOREIGN-EXCHANGE-AND-OIL-INDUSTRY-LAUNDERING-DIRTY-MONEY-WORLDS-THIRD-LARGEST-BUSINESS.THE-PROCESS-OF-DISTINGUISHING-THE-PROCEDECURE-OF-CRIME-IN-AN-EFFORT-TO-CONCEAL-THEIR-ILLICIT-THEIR-ORGINS-AND-LEGITIMIZE-THEIR-FUTURE-USE.TECHNIQUES-THEY-CAN-BE-SIMPLE-DIVERSE-COMPLEX.

MONEY-IS-LAUNDERED-THROUGH.

BANKS

BROKERGAE-FIIRMS.

FINANCIAL-INSTITUTION

Other Ex: Insurance companies,Money remitters, Cash intensive businesses, Brokerage firms, RealtorsCrooked LAWYERS and ACCOUNTANTS

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A. Bogus Loan EntryB.Formulation of Trust & doing CharityC.Showing Income as Agriculture IncomeD.Showing Cash Income from ProfessionE.Sale of personal belonging like JewelryF.Converting Black money by InvestmentG.Getting Black money as giftH.Depositing Black Money on name of Family membersI.By Real EstateJ.By Declaring Black Money

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10-METHODS-TO-DIVERT-BLACK-MONEY-TO-WHITE.

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Simple Bribe and Money Laundering Transaction

Company A• Needs to

generate $1 million for bribe to Finance Minister.

• Uses invoices from company in Country 2

Country 1

Country 2

Company Bank Account

Country 3

Company owned by Minister’s cousin

Country 4

$500,000 - Purchase of Real Estate

$500,000 - Purchase of Bearer Share

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What Are The Benefits Of Money Laundering Laws?

Money Laundering is a separate offense which carries additional jail time. Allows for seizure and confiscation of proceeds of crime.

Allows law enforcement access to bank and other financial institution records.

Requires financial institutions to file suspicious and sometimes cash transaction reports, and to identify the beneficial owners of legal entities.

Requires establishment of Financial Intelligence Units which receive reports from financial institutions and can provide new channels for international exchange of information.

KEY QUESTIONSHow does anti-money laundering make it riskier for

corruptors/corruptees?

How much can AML deter corruption?

What are the measures that will contribute to increase risk and prevention of corruption?

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INCENTIVES TO LAUNDER

1.Large amount of proceeds from corruption that need to be hidden

2.Low confidence in the security of assets in country

3.Asset disclosure requirements4.Political instability or possible regime change5.Greater risk for corruptors and corrupters of

investigation and prosecution

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Where are we in 2016?

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Tighter controls on AML globally Fewer secrecy havens Greater international cooperation and pressure

to adopt international standards (FATF and FSAPS by IMF/WB)

Private sector generally proactive in monitoring their business relationships

High risk customers Non-bank financial institutions ( money transmitters,

cheque cashiers, full fledged money changers, sellers of stored value cards, security brokers & dealers etc. )

Travel agencies / Property dealers/ builders Professional and consulting firms Exporters or importers of goods and services Cash intensive business e.g. retail stores,

restaurants, gambling casinos, second hand car dealerships etc.

Off-shore corporations, banks in secrecy heavens Non-profit organisations e.g charities6/1/2016

High risk products & services

Wire transfers Electronic banking services which includes

services offered through internet, credit cards, stored value cards

Private banking relationships Correspondent banking relationships.

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High risk countries Geography

Drug producing nationsDrug transshipment countriesDrug using countriesSecrecy jurisdictions and tax havens, particularly those that

grant offshore banking licenses.Countries with high degree of public corruptionCountries linked to terrorist financingNon Cooperative Countries and Territories.

USA,BANAGLADESH,INDIA,CHINA.SRILANKA,PAKISTHAN,BRAZIL.COLUMBIA,MEXICO,VENEZUELA,AFGANISTHAN,DUBAI,MIDDLE-EAST.ETC

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10 Method to Convert Black Money to White-In-detail Bogus Loan Entry: Popular method people use to convert black money to white is by showing bogus loan entry. Modus

operandi under this case will be people give black money to friend or relative and take a cheque from them. This is kind of bogus loan entry to convert black money to white.

Formulation of Trust & doing Charity: Another popular way used by people to convert black money to white is by formulating trust for social cause. They make executive bodies of own people in trust sometimes illiterate people like driver cook etc. They donate black money to this trust as charity to convert black money.

Cash Income from Profession: Another popular way to convert black money to white is by showing income in cash. Income from tuition, professional fees or commission is shown as cash by many tax payers it is nothing but converting black money in white.

 Sale of personal belonging like Jewelry: Go to known jeweler and give him all black money you want to convert. He will give you cheque for the same amount. He will also give you purchase bill showing you sold your personal Jewelry to him. By this way your Black money is converted to white and you need not to pay capital gain tax even.

Depositing Black Money on name of Family members:Another popular method for converting black money to white is to open bank account on each and every individual family member. Deposit black money on the name of every family member to convert it in white.

By Real Estate: Real estate is sector where majority of black money is parked. People use real estate deals to convert black money to white. It is observed that people do fake real estate deal exchange money and cancel these deals due to non-payment of money.

By Declaring Black Money: Best method for converting black money to white as per me is by declaring this money to IT authorities and paying tax on this money to convert it in white

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Graph-and-process

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SalesGOLD COCAINE PHENSIDYLEFOREIGN CURRENCY

ELECTROCLIS MOBILE

BLACK-INCOME-THROUGH-MARKET

Sales

BOGUS-LOAN AGRO-INCOMEBUYING-JWELLERY INVESTMENTGIFT-MONEY FAMILY-MEMBERDECLARING FAKE-TRANSECTION

HOW-DOEST-IT-WORKS.

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Overview-and-chain

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COMPLIMENTS

WITH-BEST-REGARDS-MD.TASRIF-MASRUF-KHAN.

111-43-255.

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