¶ … money laundering from the perpetrator's perspective. In specific, it will address the questions of whether virtual money can be counterfeited, whether the money can be trailed, and who can access the devices used for financing the system.
The simplest form of money laundering entails making it appear as though the money derived from one source (say, Source A) actually comes from another (Source B, for instance). That is, criminals perpetrating this crime attempt to cover the origin of their illegally-procured money, making it appear as though their source was lawful. If they do not do so, they will not be able to utilize that money, as a link could be established between it and some criminal activity, causing law enforcement personnel to seize the money (Money Launderering Basics - How Money Laundering Works - Howstuffworks). The practice of money laundering constitutes a key step in successful white-collar crimes, terror activities, and drug trafficking. This paper will look into money laundering as an activity from a criminal's perspective.
A money launderer opens several, unconnected virtual accounts under fictitious names. These accounts are financed with money from an organized criminal operation involving sports betting. The launderer is able to make purchases online from, as well as to, himself by making use of these accounts as though he were buying assets from fellow residents He can then guide all proceeds to another account, from which funds may be withdrawn via an ATM card or directly into a bank account. Tracing this money's source would be virtually impossible. The above scenario gives rise to the questions listed below:
1. Is it possible to counterfeit virtual money?
1. Is any trail left behind, using which the money can be tracked?
1. Who can access the computers that finance the system? (i.e., potential participants of a money laundering plan)
Counterfeiting Virtual Money
The ever-growing virtual worlds which have become part and parcel of a large share of the world's population bring to the forefront the issue of virtual ID security. Betting of real cash and the trade of game currency on markets within games has given birth to an unplanned, but swiftly developing, online stock market. Gamblers disgruntled with the emaciated real-world stock market will undoubtedly turn their attention to these viable virtual worlds. In the absence of any Securities and Exchange Commission in...
Offenders here might physically transport cash to those countries in small amounts that will not violate customs regulations. However, this method is not viable for transferring large amounts of money. Very large amounts of money can be informally transferred through a network of bookees across a number of different countries. Such bookees possess or have access to large amounts of cash. Bookees in the destination country can disburse money to
Under the Annunzio-Wylie Act, the U.S. Treasury is authorized to require financial institutions to adopt anti-money laundering programs that include: (a) internal policies, procedures, and controls; (b) designation of a compliance officer; - continuation of an ongoing employee training program; and (d) an independent audit function to test the adequacy of the program. Source: Zagaris, 1999, p. 1023. Therefore, building a case against sophisticated money-laundering schemes begins with recognizing when a
S. Department of Justice Press Release, 2007). Hiding money in banks of small island nations is a popular form of money laundering, hence the term 'off-shore' companies for the use of concealing funds as well as creating the off-shore gambling facilities themselves. Relationship between Illegal Drugs and Gambling The illegal drug trade and illegal gambling often exhibit a symbiotic relationship in the case of money laundering. Casinos have also been used as
economic crisis in Europe and the increasing costs for European countries to borrow money and bail out other Euro countries in financial distress. The EU nations that use the Euro have experienced a crisis among certain countries with high debt requiring bailouts for Greece and Ireland and the likelihood that Portugal and Spain may also need a bailout. Postponing the restructuring of high interest debts has led to further
Illicit finance has come to be a significant issue not only locally, but also internationally. There are numerous delineations of illicit finance, but fundamentally it comes about from the practices, approaches and crimes targeting to transfer financial capital within and out of a nation in violation of national and global laws. Across the world, government administrations are working in tandem and joining forces to combat different illicit financial flows, which
Combating Money Laundering - Imperative to Cut down on Terrorism FATF - Financial Action Task Force GAO - General Accounting Office UGAO - United States General Accounting Office OECD - Organization of Economic Cooperation and Development IFA - International Federation of Accountants Money Laundering What is Money Laundering? The act of converting money earned from illegal activities such as drugs, arms smuggling and other crimes, including insider trading, embezzlement, bribery and computer fraud schemes as well as fraudulent
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