 | |  | |  | |  | |  | |  |
 | |  | |  | |  | |  | |  |
Money Laundering
The International Monetary Fund estimates money laundering, the process drug traffickers use to
introduce the proceeds gained through the sale or distribution of controlled substances into the legitimate
financial market, to amount to between 2 and 5 percent of the world's Gross Domestic Product, about $600
billion annually. Money laundering allows the true source of the funds gained through the sale and
distribution of drugs to be concealed and converts the funds into assets that appear to have a legitimate
legal source. The need to launder conspicuously large amounts of small-denomination bills renders the
traffickers vulnerable to law enforcement interdiction. Tracking and intercepting this illegal flow of drug
money is an important tool used to identify and dismantle international drug trafficking organizations.
Current Money Laundering Trends
Drug traffickers use various methods to launder their profits both inside and outside of the United States.
Presently, some of the more common laundering methods include: the Black Market Peso Exchange, cash
smuggling (couriers or bulk cash shipments), gold purchases, structured deposits to or withdrawals from
bank accounts, purchase of monetary instruments (cashier's checks, money order, traveler's checks, etc.),
wire transfers, and forms of underground banking, particularly the Hawala system.
DEA Response to Money Laundering
Highway interdiction programs, such as Operations Pipeline and Convoy, that stop the bulk movement of
illicit funds are highly effective impediments to money laundering. The DEA has also launched major
operations specifically targeting the money-laundering capabilities of major trafficking organizations. For
example, Operation Juno out of the Atlanta Field Division provided money and financial services to launder
drug proceeds obtained from around the world. Operation Juno would arrange to sell U.S. dollars obtained
from selling narcotics for pesos via the Colombian Black Market Peso Exchange. This operation concluded
in December of 1999 with the arrest of 40 individuals, $10 million in seizures, seizure of 3,601 kilograms of
cocaine, and 106 grams of hashish oil, and civil seizure warrants of 59 domestic bank accounts. This was
a significant strike against the black market peso system. This was the first instance Colombian authorities
were able to seize this volume of trafficker accounts based on information obtained from a joint
investigation with U.S. law enforcement agencies.
source: United States Drug Enforcement Administration
The International Monetary Fund estimates money laundering, the process drug traffickers use to
introduce the proceeds gained through the sale or distribution of controlled substances into the legitimate
financial market, to amount to between 2 and 5 percent of the world's Gross Domestic Product, about $600
billion annually. Money laundering allows the true source of the funds gained through the sale and
distribution of drugs to be concealed and converts the funds into assets that appear to have a legitimate
legal source. The need to launder conspicuously large amounts of small-denomination bills renders the
traffickers vulnerable to law enforcement interdiction. Tracking and intercepting this illegal flow of drug
money is an important tool used to identify and dismantle international drug trafficking organizations.
Current Money Laundering Trends
Drug traffickers use various methods to launder their profits both inside and outside of the United States.
Presently, some of the more common laundering methods include: the Black Market Peso Exchange, cash
smuggling (couriers or bulk cash shipments), gold purchases, structured deposits to or withdrawals from
bank accounts, purchase of monetary instruments (cashier's checks, money order, traveler's checks, etc.),
wire transfers, and forms of underground banking, particularly the Hawala system.
DEA Response to Money Laundering
Highway interdiction programs, such as Operations Pipeline and Convoy, that stop the bulk movement of
illicit funds are highly effective impediments to money laundering. The DEA has also launched major
operations specifically targeting the money-laundering capabilities of major trafficking organizations. For
example, Operation Juno out of the Atlanta Field Division provided money and financial services to launder
drug proceeds obtained from around the world. Operation Juno would arrange to sell U.S. dollars obtained
from selling narcotics for pesos via the Colombian Black Market Peso Exchange. This operation concluded
in December of 1999 with the arrest of 40 individuals, $10 million in seizures, seizure of 3,601 kilograms of
cocaine, and 106 grams of hashish oil, and civil seizure warrants of 59 domestic bank accounts. This was
a significant strike against the black market peso system. This was the first instance Colombian authorities
were able to seize this volume of trafficker accounts based on information obtained from a joint
investigation with U.S. law enforcement agencies.
source: United States Drug Enforcement Administration
THE FIGHT AGAINST
MONEY LAUNDERING
Money laundering allows crime to pay by permitting
criminals to hide and legitimize proceeds derived from
illegal activities. According to one recent estimate,
worldwide money laundering activity amounts to roughly
$1 trillion a year. These illicit funds allow criminals to
finance a range of additional criminal activities.
MONEY LAUNDERING
Money laundering allows crime to pay by permitting
criminals to hide and legitimize proceeds derived from
illegal activities. According to one recent estimate,
worldwide money laundering activity amounts to roughly
$1 trillion a year. These illicit funds allow criminals to
finance a range of additional criminal activities.
Moreover, money laundering abets corruption, distorts economic decision-making, aggravates social ills,
and threatens the integrity of financial institutions.
Money launderers now have access to the speed and ease of modern electronic finance. Given the
staggering volume of this crime, broad international cooperation between law enforcement and regulatory
agencies is essential in order to identify the source of illegal proceeds, trace the funds to specific criminal
activities, and confiscate criminals' financial assets.
This issue of Economic Perspectives gives some idea of the scope of the problem as well as the way
agencies of the U.S. government are cooperating with each other, the private sector, and foreign
governments to contain this scourge.
-- Ambassador Wendy Chamberlin, Principal Deputy Assistant Secretary
Bureau for International Narcotics and Law Enforcement Affairs, U.S. Department of State
and threatens the integrity of financial institutions.
Money launderers now have access to the speed and ease of modern electronic finance. Given the
staggering volume of this crime, broad international cooperation between law enforcement and regulatory
agencies is essential in order to identify the source of illegal proceeds, trace the funds to specific criminal
activities, and confiscate criminals' financial assets.
This issue of Economic Perspectives gives some idea of the scope of the problem as well as the way
agencies of the U.S. government are cooperating with each other, the private sector, and foreign
governments to contain this scourge.
-- Ambassador Wendy Chamberlin, Principal Deputy Assistant Secretary
Bureau for International Narcotics and Law Enforcement Affairs, U.S. Department of State
THE FIGHT AGAINST MONEY LAUNDERING
FOCUS
THE CONSEQUENCES OF MONEY LAUNDERING AND FINANCIAL CRIME
By John McDowell, Senior Policy Adviser, and Gary Novis, Program Analyst, Bureau of International
Narcotics and Law Enforcement Affairs, U.S. Department of State
Money laundering distorts business decisions, increases the risk of bank failures, and takes control of
economic policy away from the government. International cooperation is necessary to keep money
launderers in check.
INTERNATIONAL STANDARDS AND COOPERATION IN THE FIGHT AGAINST MONEY LAUNDERING
By Joseph Myers, Acting Deputy Assistant Secretary, Enforcement Policy, U.S. Department of the Treasury
Member countries of the Financial Action Task Force and similar regional groups have achieved good
international cooperation, but they need to do much more.
MONEY LAUNDERING ENFORCEMENT: FOLLOWING THE MONEY
By Lester M. Joseph, Assistant Chief, Asset Forfeiture and Money Laundering Section, U.S. Department of
Justice
Just as often as U.S. law enforcement agencies succeed in frustrating money laundering schemes, they
are frustrated by the complexities of foreign jurisdictions and outright lack of foreign cooperation.
ACHIEVING A SUSTAINED RESPONSE TO MONEY LAUNDERING
By Steven L. Peterson, Acting Office Director, Crime Programs, Bureau of International Narcotics and Law
Enforcement, U.S. Department of State
To attack money laundering a national government needs to have legal, financial, and law enforcement
infrastructure in place. Several U.S. government agencies provide training to foreign governments for
building this infrastructure.
COMMENTARY
UNDERSTANDING THE WASH CYCLE
By Paul Bauer, Economic Adviser, and Rhoda Ullmann, Research Assistant, Federal Reserve Bank of
Cleveland
Laundering entails three basic steps to blend dirty money in with trillions of dollars exchanged in legitimate
business activity. A number of U.S. laws require banks and bank regulators to interrupt these schemes.
U.S. BANKING: AN INDUSTRY'S VIEW ON MONEY LAUNDERING
By Anne T. Vitale, Esq.
U.S. banks conduct vigorous programs to prevent money-laundering abuse of their business. Most
important for the success of such programs is the demonstration of commitment from senior management.
CORRESPONDENT BANKING: A GATEWAY FOR MONEY LAUNDERING
By Linda Gustitus, Elise Bean, and Robert Roach, Democratic Staff, Permanent Subcommittee on
Investigations, Committee on Governmental Affairs, U.S. Senate
By allowing high-risk foreign banks and their criminal clients access to correspondent bank accounts, U.S.
banks are facilitating crime and undermining the U.S. financial system.
FACTS AND FIGURES
THE FINANCIAL ACTION TASK FORCE ON MONEY LAUNDERING
MONEY LAUNDERING COMPARATIVE TABLE OF COUNTRIES/JURISDICTIONS OF CONCERN
INFORMATION RESOURCES
KEY CONTACTS AND INTERNET SITES
ADDITIONAL READINGS ON MONEY LAUNDERING
FOCUS
THE CONSEQUENCES OF MONEY LAUNDERING AND FINANCIAL CRIME
By John McDowell, Senior Policy Adviser, and Gary Novis, Program Analyst, Bureau of International
Narcotics and Law Enforcement Affairs, U.S. Department of State
Money laundering distorts business decisions, increases the risk of bank failures, and takes control of
economic policy away from the government. International cooperation is necessary to keep money
launderers in check.
INTERNATIONAL STANDARDS AND COOPERATION IN THE FIGHT AGAINST MONEY LAUNDERING
By Joseph Myers, Acting Deputy Assistant Secretary, Enforcement Policy, U.S. Department of the Treasury
Member countries of the Financial Action Task Force and similar regional groups have achieved good
international cooperation, but they need to do much more.
MONEY LAUNDERING ENFORCEMENT: FOLLOWING THE MONEY
By Lester M. Joseph, Assistant Chief, Asset Forfeiture and Money Laundering Section, U.S. Department of
Justice
Just as often as U.S. law enforcement agencies succeed in frustrating money laundering schemes, they
are frustrated by the complexities of foreign jurisdictions and outright lack of foreign cooperation.
ACHIEVING A SUSTAINED RESPONSE TO MONEY LAUNDERING
By Steven L. Peterson, Acting Office Director, Crime Programs, Bureau of International Narcotics and Law
Enforcement, U.S. Department of State
To attack money laundering a national government needs to have legal, financial, and law enforcement
infrastructure in place. Several U.S. government agencies provide training to foreign governments for
building this infrastructure.
COMMENTARY
UNDERSTANDING THE WASH CYCLE
By Paul Bauer, Economic Adviser, and Rhoda Ullmann, Research Assistant, Federal Reserve Bank of
Cleveland
Laundering entails three basic steps to blend dirty money in with trillions of dollars exchanged in legitimate
business activity. A number of U.S. laws require banks and bank regulators to interrupt these schemes.
U.S. BANKING: AN INDUSTRY'S VIEW ON MONEY LAUNDERING
By Anne T. Vitale, Esq.
U.S. banks conduct vigorous programs to prevent money-laundering abuse of their business. Most
important for the success of such programs is the demonstration of commitment from senior management.
CORRESPONDENT BANKING: A GATEWAY FOR MONEY LAUNDERING
By Linda Gustitus, Elise Bean, and Robert Roach, Democratic Staff, Permanent Subcommittee on
Investigations, Committee on Governmental Affairs, U.S. Senate
By allowing high-risk foreign banks and their criminal clients access to correspondent bank accounts, U.S.
banks are facilitating crime and undermining the U.S. financial system.
FACTS AND FIGURES
THE FINANCIAL ACTION TASK FORCE ON MONEY LAUNDERING
MONEY LAUNDERING COMPARATIVE TABLE OF COUNTRIES/JURISDICTIONS OF CONCERN
INFORMATION RESOURCES
KEY CONTACTS AND INTERNET SITES
ADDITIONAL READINGS ON MONEY LAUNDERING
The International Money Laundering Information Network (IMoLIN), an Internet-based network
assisting governments, organizations and individuals in the fight against money laundering. IMoLIN has
been developed with the cooperation of the world's leading anti-money laundering organizations . Included
herein is a database on legislation and regulation throughout the world (AMLID), an electronic library, and
a calendar of events in the anti-money laundering field. Please be advised that certain aspects of IMoLIN
are secured and therefore not available for public use.
assisting governments, organizations and individuals in the fight against money laundering. IMoLIN has
been developed with the cooperation of the world's leading anti-money laundering organizations . Included
herein is a database on legislation and regulation throughout the world (AMLID), an electronic library, and
a calendar of events in the anti-money laundering field. Please be advised that certain aspects of IMoLIN
are secured and therefore not available for public use.
The International Money Laundering Information Network (IMoLIN), a one-stop AML/CFT research
resource, was established in 1998 by the United Nations on behalf of a partnership of international
organizations involved in anti-money laundering. The Anti-Money Laundering Unit (AMLU) of the United
Nations Office on Drugs and Crime (UNODC) now administers and maintains IMoLIN on behalf of the Asia
Pacific Group on Money Laundering (APG), the Caribbean Financial Action Task Force (CFATF),
Commonwealth Secretariat, the Council of Europe - MONEYVAL, the Eastern and Southern Africa
Anti-Money Laundering Group (ESAAMLG), the EuroAsian Group (EAG), the Financial Action Task Force
(FATF), Financial Action Task Force on Money Laundering in South America (GAFISUD), Interpol, and the
Organization of American States (OAS/CICAD). In the first half of 2004, AMLU relaunched IMoLIN, after
completing an extensive renovation of the site's 'look and feel' and its content, in collaboration with
UNODC's IT Section.
This multi-faceted website serves the global anti-money laundering community by providing information
about national money laundering laws and regulations and contacts for inter-country assistance. Inter
alia, it identifies areas for improvement in domestic laws, countermeasures and international co-operation.
Policy practitioners, lawyers and law enforcement officers all regularly use IMoLIN as a key reference
point in their daily work. The information on IMoLIN is freely available to all Internet users, with the
exception of AMLID, which is a secure database.
The key features of the IMoLIN system are:
--the Anti-Money Laundering International Database (AMLID) , a compendium of analyses of anti-money
laundering laws and regulations, including two general classes of money laundering control measures
(domestic laws and international cooperation) as well as information about national contacts and
authorities. AMLID is a secure, multi-lingual database and is an important reference tool for law
enforcement officers involved in cross-jurisdictional work. The AMLID questionnaire was updated to
reflect new money laundering trends and standards, and takes into account provisions related to terrorist
financing and other current standards, such as the revised FATF 40 + 9 Recommendations. In addition,
the revised AMLID questionnaire now includes a Conventions Framework section. This new section gives
an overview of the status of a country or territory to the international conventions applicable to anti-money
laundering/countering the financing of terrorism (AML/CFT) as well as the status of a country or territory
to bi-lateral/multi-lateral treaties or agreements on mutual legal assistance in criminal matters and
extradition. In April 2005, AMLU initiated the second round of analysis utilizing the recently revised
questionnaire and on 27 February 2006, UNODC launched the AMLID 2nd Round of Legal Analysis;
--the reference section that contains details of the UN's latest research, abstracts of the best new
research from governments and international organizations and a bibliography;
--a click-on map that takes users to regional lists of national legislation .Eventually, this section will contain
the full text or links to the full text of all national anti-money laundering/countering the financing of
terrorism (AML/CFT) legislation and regulations throughout the world. The database now contains
legislation from some 163 jurisdictions and, since January 2005, more than 250 new/amended AML/CFT
legislation and regulations were collected to be included in the database;
--International Norms and Standards: model laws for common law and civil law systems, standards,
conventions and legal instruments ;
--a worldwide calendar of events that lists current training events and conferences at national, regional
and international level; and,
--a links section that includes links to the websites of related regional organizations active in the field of
AML/CFT and financial intelligence units ( FIUs ).
resource, was established in 1998 by the United Nations on behalf of a partnership of international
organizations involved in anti-money laundering. The Anti-Money Laundering Unit (AMLU) of the United
Nations Office on Drugs and Crime (UNODC) now administers and maintains IMoLIN on behalf of the Asia
Pacific Group on Money Laundering (APG), the Caribbean Financial Action Task Force (CFATF),
Commonwealth Secretariat, the Council of Europe - MONEYVAL, the Eastern and Southern Africa
Anti-Money Laundering Group (ESAAMLG), the EuroAsian Group (EAG), the Financial Action Task Force
(FATF), Financial Action Task Force on Money Laundering in South America (GAFISUD), Interpol, and the
Organization of American States (OAS/CICAD). In the first half of 2004, AMLU relaunched IMoLIN, after
completing an extensive renovation of the site's 'look and feel' and its content, in collaboration with
UNODC's IT Section.
This multi-faceted website serves the global anti-money laundering community by providing information
about national money laundering laws and regulations and contacts for inter-country assistance. Inter
alia, it identifies areas for improvement in domestic laws, countermeasures and international co-operation.
Policy practitioners, lawyers and law enforcement officers all regularly use IMoLIN as a key reference
point in their daily work. The information on IMoLIN is freely available to all Internet users, with the
exception of AMLID, which is a secure database.
The key features of the IMoLIN system are:
--the Anti-Money Laundering International Database (AMLID) , a compendium of analyses of anti-money
laundering laws and regulations, including two general classes of money laundering control measures
(domestic laws and international cooperation) as well as information about national contacts and
authorities. AMLID is a secure, multi-lingual database and is an important reference tool for law
enforcement officers involved in cross-jurisdictional work. The AMLID questionnaire was updated to
reflect new money laundering trends and standards, and takes into account provisions related to terrorist
financing and other current standards, such as the revised FATF 40 + 9 Recommendations. In addition,
the revised AMLID questionnaire now includes a Conventions Framework section. This new section gives
an overview of the status of a country or territory to the international conventions applicable to anti-money
laundering/countering the financing of terrorism (AML/CFT) as well as the status of a country or territory
to bi-lateral/multi-lateral treaties or agreements on mutual legal assistance in criminal matters and
extradition. In April 2005, AMLU initiated the second round of analysis utilizing the recently revised
questionnaire and on 27 February 2006, UNODC launched the AMLID 2nd Round of Legal Analysis;
--the reference section that contains details of the UN's latest research, abstracts of the best new
research from governments and international organizations and a bibliography;
--a click-on map that takes users to regional lists of national legislation .Eventually, this section will contain
the full text or links to the full text of all national anti-money laundering/countering the financing of
terrorism (AML/CFT) legislation and regulations throughout the world. The database now contains
legislation from some 163 jurisdictions and, since January 2005, more than 250 new/amended AML/CFT
legislation and regulations were collected to be included in the database;
--International Norms and Standards: model laws for common law and civil law systems, standards,
conventions and legal instruments ;
--a worldwide calendar of events that lists current training events and conferences at national, regional
and international level; and,
--a links section that includes links to the websites of related regional organizations active in the field of
AML/CFT and financial intelligence units ( FIUs ).
| Copyright © 2006 - 2009 - Barry M. Baker - CareerPoliceOfficer.com |
| Disclaimer |
| CareerPoliceOfficer.com is not responsible for the contents of any linked site or any link contained in a linked site, or any changes or updates to such sites. Links are provided only as a convenience, and the inclusion of any link does not imply endorsement by this site. |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| Money Laundering |
Protect
your files
your files
Protect
your identity
your identity
