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Money laundering activities around the worldBY: David Prakash Kumar | Category: Business and Finance | Post Date: 2009-07-15
Money laundering activities are increasing day by day, all around the world. Previously money used to be in cash. So it had to be carried away. Now with the increasing amount of money also being virtual, the computer has become an easy method of laundering huge amounts of money from one place to another. Identity thefts are also on the rise. This helps the identity thieves to learn all about the investments and bank balances of the person. Then the thieves use this information to log into the individuals account and transfer the funds available into their own accounts in another country where the laws are conducive for these kinds of activities. Thus money laundering has become a money spinner for people who know how to use technology. The thieves do not understand the pain it causes to the person who has lost the money. There are a few features of banks that attract money launderers. These features are: 1. Wide range of services and access to wider financial systems. As the range increases, the control is likely to decrease causing an increase in the money laundering activity. 2. International connections and facilities: This helps in easy transfer of large amounts of money. It also helps the money in quick succession to various banks that tracing the money becomes impossible. 3. Accessibility through networks: The various networks available due to computerisation and core banking system has led to easy accessibility of funds. The modus operandi of money launderers: 1. Operating accounts in false names or in the names of associates, friends, trusts or companies on behalf of undisclosed principals. 2. Using wire transfer has also led to easy transfer of the funds. 3. Purchasing bank cheques in order to layer the transactions or to move funds out of the country. 4. Taking loans, later repaid with proceeds of crime or using illegal money/ assets as collaterals for the loan. 5. Cyber banking enables movements of funds anywhere in the world as fast as the wire transfer and computer banking systems allow. Effects of money laundering on an economy: 1. Losses to the victims of the crime can sometimes cripple a family leading to suicide of the individual. 2. The gains by the criminal leads to unlawful increase in the money. This money is rarely spent. Instead, it is hoarded, not useful for anyone. 3. The laundered money is usually used to fund illegal activities like terrorism and other such activities. It is also sometimes used to corrupt the public offices. These are the effects of money laundering on the economy. Money laundering has to be strictly condemned and stringent action should be taken against the perpetrators of the crime. Article Source: http://www.saching.com About Author / Additional Info: I am a physiotherapist by profession. A writer by interest. I take up freelance assignments for various websites and blogs. Comments are welcome at prakashdavid@rediffmail.com Additional Articles: * Many wonderful health benefits of Aloe Vera that everyone should know * My academic journey so far ... * My Personal Trekking Experience, India. By Namita Vyavaharkar * Love.. Make it survive... * The Essence Of Indian Philosophy Does this article violate or infringe on your copyright ? It is a violation of our terms for authors to submit content which they did not write and claim it as their own. If this article infringes on your copyrights, then use our Contact us form with the detailed proof of infringement along with the offending article's title, URL and writer name. If you do not hear back from us then contact us again in another 10 days. Thank you. Comments on this article: (0 comments so far) * Additional comments are now closed for this article *
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