Money Laundering FAQs

How is the offense of money laundering committed?

Money laundering offense is committed in circumstances where a person is engaged in an arrangement (by providing a serviceid or product) and that arrangement involves the proceeds of crime. These arrangements include a wide variety of business relationships e.g. banking, and investment management. In some cases the offence may also be committed where a person knows or suspects that the person with whom he or she is dealing is engaged in or has benefited from criminal conduct.

If I am involved in an investigation, what should I do?

You should submit all information and documentation of any activity which has been linked to a lot of money. It is advisable to try to use electronic payments through banks.

What differentiates an unusual operation of a suspect one?

An unusual operation is one that has no relation to the economic activities which will normally make the person; while a suspicious transaction is one that is unusual but presumed to come from illegal activity and has no economic basis.

Are all crimes capable of predicating money laundering?

Different jurisdictions define crime predicating the offense of money laundering in different ways. Generally the differences between the definitions may be summarized as follows:

• Differences in the degree of severity of crime regarded as sufficient to predicate an offence of money laundering. For example in some jurisdictions it is defined as being any crime that would be punishable by one or more years imprisonment. In other jurisdictions the necessary punishment may be three or five years imprisonment; or Differences in the requirement for the crime to be recognized both in the country where it took place and by the laws of the jurisdiction where the laundering activity takes place or simply a requirement for the conduct to be regarded as a crime in the country where the laundering activity takes place irrespective of how that conduct is treated in the country where it took place. In practice almost all serious crimes, including, drug trafficking, terrorism, fraud, robbery, prostitution, illegal gambling, arms trafficking, bribery and corruption are capable of predicating money laundering offences in most jurisdictions.

What is money laundered?

Money is laundered when a person or business deals in any way with the benefit of someone else's crime. That can happen in many different ways. Generally, money laundering takes place in three stages. Placement, the stage at which the funds are brought in the financial system. Layering, the process in which the property is 'laundered' and its ownership and source are camouflaged. Integration, the last stage at which the 'laundered' property is re-inserted into the legitimate economy.

Is there any place where it is allowed to save money and the origin is not investigated?

Yes, these places are appointed fiscal paradise. Countries are exempt of tax payments or low invested that have bank accounts or large business in their territory, usually illicit money is transferred to these countries to hinder tracing the source of that money.

What crimes fall under the RICO law?

By law the purpose of this organized criminal activity includes:

• Any violation of state laws such as occupation of toxic substances, murder, extortion, arson, robbery, trafficking in, kidnapping. Any violation or act of embezzlement, counterfeiting, theft, bribery, fraud, obstruction of justice, money laundering, and commission of murder for hire. Assisting aliens to enter the country illegally. (if the action was for profit). Acts of terrorism.