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What is money laundering and tools

Money laundering, or what is called money laundering, is known as the process of converting large amounts of money obtained by illegal means into clean and tradable money in public activities, and money laundering is also known as a method used to conceal and cover the sources through which money is earned. ; Through the use of illegal means of investment, and then its profits are invested in legitimate and legal activities, and money laundering is considered a crime punishable by law. Because of its negative impact on the countries' private economy; As this crime allows criminals the ability to dispose of the laundered money and employ it in a range of public activities by concealing its illegal sources, and it also helps them expand their illegal business and make more of this money.


Money Laundering Tools:

There is a set of tools used by money laundering criminals, which vary from simple and traditional methods to the use of technological means that help them in the money laundering process. Among the most popular money laundering tools are the following:


Illegal trade:

It is considered one of the most popular traditional money laundering tools, which use all commercial channels in order to facilitate the money laundering process, and this trade contains illegal business such as drugs, unlicensed weapons, and non-conforming medicines, and others.



 Using a group of financial institutions:

They are institutions that help in facilitating money laundering operations by providing legal cover within the financial business and activities that they carry out, and thus contribute to converting illegal funds into laundered money.


 Real estate rental:

 It is the one who relies on the use of illegal capital in a group of real estate investment projects, which buy real estate and then lease it to individuals and institutions, and so the illegal money is replaced by legal money.


Loans:

It is one of the most common means used in money laundering. As loans linked to the value of interest are approved, and as a result of this, illegal money is presented as amounts for loans, and then a percentage of the interest is collected on its value after a certain period of time has passed. Internet technology: It is one of the modern means of money laundering, which depends on by transferring illegal funds to any other financial investments such as stocks and bonds, through the use of websites that act as a financial intermediary, which facilitates the process of investing unwashed money.


Internet technology:

One of the modern means of money laundering, which relies on transferring illegal funds to any other financial investments such as stocks and bonds, through the use of websites that act as a financial intermediary, which facilitates the process of investing unwashed money.


Stages of money laundering:

As money laundering depends on a set of stages, namely:

 Deposit:

It is the first stage of money laundering, through which money laundering criminals rely on disposing of their money by transferring it to bank deposits in banks and investment financial institutions, which contributes to replacing it with clean and legal money.


Grouping:

It is the method used by money laundering criminals to collect it within a group of projects and financial investments that guarantee them adequate coverage for their illegal operations. Aggregation helps provide camouflage for money laundering operations. Consolidation: The last stage of money laundering, through which the illegal funds are mixed with the legal funds, and thus the funds are mixed together, and it is difficult to identify them.

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