The term “money laundering” derives from the fact that gangsters in the 1920s commingled the proceeds of their illegal operations with the basically untraceable proceeds from coin laundries operated by the ring, thus making the funds appear as if they been derived legitimately. Although the term may have started in the 20th century, the practice of disguising unlawful proceeds traces its roots back to the dawn of banking itself. For example, when the Roman Catholic Church in medieval times banned lending money at interest, financiers developed methods to get around this restriction.
Criminal organizations have three objectives for laundering the proceeds of their illegal activity. These are:
o To pay expenses related to their illegal activity.
o To invest their proceeds in the criminal cycle and boost illegal activity.
o Eventually, to enjoy the profits of their criminal activity.
Today, money laundering represents an estimated 2 percent to 5 percent … Read More