money laundering best practices, lessons to be learnt and steps

More documents

Recommendations

Info

MONEY LAUNDERING BEST PRACTICES,LESSONS TO BE LEARNT ANDSTEPS TO BE TAKEN IN THE BALKAN REGIONWritten by Tamara BrneticMoney Laundering Best Practices,Lessons to be Learnt in the Balkan RegionWritten by Tamara BrneticPage 1 of 58
INTRODUCTIONThere is a saying that the dream of each and every money launderer is to pay tax, but the roadfrom dirty money to paying taxes is not cheap nor easy. Owners of “dirty money” that wasacquired by weapons trade, trafficking of narcotics, robbery, pirating, as well as by blackmailingpoliticians, want to include this money into the legal system in order to be able to invest it intolegal businesses and generate more profit, but this time legally. This is anything but a cheapprocess. According to recent information criminals are paying up to 25 % of the total amount to“financial expert advisors”, and this percentage is constantly rising. In the eighties this servicewas costing them only 6 %, and in the late nineties it reached 20 %.Peter Lilley in his book Dirty Dealing, states, among other definitions of dirty money, that it isany asset (financial and/or real property) that draws its origin from illegal activities. As such,money laundering presents a secondary crime, so there has to exist a preceding criminal activityhas to take place before laundering of profits.Money Laundering can be explained as a three phase process: First Phase – Placement - is thephysical disposal of the criminal proceeds, such as: depositing cash at a bank and converting itinto readily recoverable debt, physically moving cash in between jurisdictions, making loans incash to businesses that are “legitimate” or are connected to legitimate businesses, purchasing highvalue goods, expensive services or negotiable assets, placing cash into client accounts etc.Second Phase – Layering – when money gets separated from its criminal source by creation oflayers of transactions, such as: rapid switches of funds, use of cash deposits as collateral securityin support of legitimate transactions, transferring cash through a network of legitimate and“shell” companies, resale of goods / assets etc.. and Third Phase – Integration – meaningintegration of the criminal funds as legitimate ones, for example: false or inflated invoices –paying inflated or deflated invoices, real estate – using shell company to purchase property thensell the company with its assets for a “legal profit”, front companies – companies lend themselvesdirty money and then pay themselves “interest” on the loan, foreign bank complicity when dirtymoney is used as a security against legitimate businesses etc… 11Bob Blunden, The Money Launderers, page 20Money Laundering Best Practices,Lessons to be Learnt in the Balkan RegionWritten by Tamara BrneticPage 2 of 58
Page 1: Money Laundering Best Practices, Le
Page 5 and 6: Historically, money laundering beca
Page 7 and 8: promotion of the rule of law has to
Page 9 and 10: MONEYVALMoneyval was formerly known
Page 11 and 12: purchases. There were import/export
Page 13 and 14: Croatia has a preventive system est
Page 15 and 16: In a well known case which took pla
Page 17 and 18: Proceedings and Law on Office for P
Page 19 and 20: However, the Law does not provide f
Page 21 and 22: The last amendments of the Law on P
Page 23 and 24: Croatian Law on Prevention of Money
Page 25 and 26: duties they suspect that transactio
Page 27 and 28: Pursuant to Recommendation No 27, C
Page 29 and 30: the condition of reciprocity. Croat
Page 31 and 32: Croatia is in full compliance with
Page 33 and 34: there is no information on independ
Page 35 and 36: overwhelming model of creation of o
Page 37 and 38: Bosnia also has a wide spread probl
Page 39 and 40: On 19 November 2003, the Macedonian
Page 41 and 42: antiquities, theft of cargo of a ve
Page 43 and 44: about unusual transactions from a v
Page 45 and 46: abroad to the account of an offshor
Page 47 and 48: prostitution, trafficking in weapon
Page 49 and 50: PONZI’S SCHEMESOne of the very co
Page 51 and 52: foreign currency debt amounts to DM
Page 53 and 54:
POSSIBILITIES FOR MONEY LAUNDERERS
Page 55 and 56:
to launder monthly, so he starts to
Page 57 and 58:
work abroad bring the money into th
Page 59:
24. http://www.vreme.com/cms/view.p
show all

money laundering best practices, lessons to be learnt and steps

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?