Money Laundering

Money Laundering is the process of concealing the origins of illegally obtained Money, typically by means of transfers involving foreign banks or legitimate businesses. It often involves three stages: placement, layering, and integration. In the placement stage, illicit funds are introduced into the financial system. Layering involves conducting a series of complex transactions to obscure the original source of the funds. Finally, in the integration stage, the laundered Money is rEINtroduced into the economy, making it appear legitimate.

Examples and Cases:

• Case of the “Bank of New York”: In the late 1990s, approximately $7 billion in Russian organized crime Money was funneled through the Bank of New York. The bank’s involvement raised significant awareness and led to reforms in anti-Money laundering practices.
• Case of “HSBC”: In 2012, HSBC was fined $1.9 billion for failing to maintain adequate controls to prevent Money laundering. The bank was found to have facilitated the movement of drug cartel Money from Mexico.
• Case of “Panama Papers”: The 2016 leak revealed how wealthy individuals and public officials used offshore accounts to hide their wealth and launder Money, showcasing the complexities and global scale of Money laundering activities.