What is Money Laundering?
Money laundering is the process of turning the illegal profits of criminal activity into legal assets. Various regulatory and legal systems confuse the term ‘money laundering’ with different types of business and financial crimes. It is the most prominent form of abuse in the financial system.
Other wrong doings include credit card fraud, manipulation of digital currencies and securities. It may even include evasion of international sanctions and financing of terrorism. Laws prohibiting terrorism financing commonly overlaps with laws disallowing money laundering.
What Other Countries say about Money Laundering?
Many countries describe money laundering as hiding means of money. This can either be intentional or simply making use of financial services or systems that don’t track or recognize destinations or sources. Money laundering is money made from an activity that is considered illegal in that country.
This is illegal even if it is considered legit where the activity took place. Thus, money laundering spans from extraterritorial to incidental or simply privacy seeking acts.
What is Reverse Money Laundering?
Reverse money laundering is a process that covers a legal means of funds that are going to be utilized for illegal activities. Also, its common purpose includes the aiding of terrorism. Criminal organizations also utilize it by putting in money in authentic legit business, before extracting rightful funds from authorized circulation.
Official financial reporting does not consider unaccounted cash through financial operations in their reports. Additionally, uses of this unaccounted cash include under-the-table salaries and giving of bribes.
Such fraudulent monetary practices have become an increasingly delicate issue, especially in Russia and different countries of the former Soviet bloc. An example of an organization combating this problem is the Eurasian Group (EAG). Countries like India and Kazakhstan and more make up this regional body. This organization has recommended procedures to simplify an economy’s handling and planning. It also decreases the size of a shadow economy.
Here, at the Best Licensed Moneylender Singapore, you can rest assured that we do our utmost best in preventing money laundering. Before disbursing any loans, our experienced loan officers conduct a diligent investigation on our customers.
These checks by our officers reduce the risk that any loans we give out are for illegal purposes.