Money Laundering Process Research Articles

Data Mining Model for Money Laundering Detection in Financial Domain

One of the likeliest problems faced by the banks is the way the nature of money transaction takes place is not always known to the bank. One such problem consisting large amounts of money transferring through various accounts by the same person or entity is Money Laundering. Money laundering system is quite a convoluted process. It takes some understanding of the fund transferring activities at various stages. The system that works against Money laundering is Anti-Money Laundering (AML) system. The existing system for Anti-Money Laundering accepts bulk of data and converts it to large volumes reports that are tedious and topsy-turvy for a person to read without any help of software. Hence, the purpose of making decision within specified time span is de-facilitated. The basic motive behind designing a system is that it should either notify or generate alarm for Money Laundering process within time when the illicit actions are been carried out so that, some action can be taken or an decision could be made before the actual laundering task is completed. The Transaction flow analysis (TFA) is a system that facilitates the basic ideology of Anti-Money Laundering system. TFA consists of various segments those results in clusters of various sizes. However, the existing TFA system allows the data to be taken from a single entity may be bank or a financial institution. Also the cluster generated are large in volume hence the analyst sometime may find it difficult to analyze such huge amount of data. This project uses combination of TFA system with the system designed to extract customer behavior in order to make decision whether the customer is suspicious customer or not. Also this project will allow taking data as input from various sources, integrating and then performing operations on the data. General Terms Laundering

<i>Cave Pecuniam:</i> Lawyers as Launderers

The attorney’s trust account is an enticing prospect for criminals seeking ways to launder money acquired illegally, and the attorney whose trust account is abused in this way stands to be branded and punished as a money launderer. The overall aim of the article is to identify the dangers which money launderers pose to attorneys and to highlight the need for vigilance in the face of these dangers. It analyses the anti-money laundering reporting obligations imposed on attorneys by the Financial Intelligence Centre Act and considers impact of these obligations upon the attorney-client relationship. Some of the ways in which a law practice may become implicated in the placement, layering and integration stages of the money laundering process are discussed, and cases which deal with attorneys’ involvement in money laundering schemes are presented.

The Correlation and Linear Regression Analysis between Annual GDP Growth Rate and Money Laundering in Albania during the Period 2007-2011*

This study is the first attempt to investigate the relationship between the annual GDP growth rate and money laundering in the Republic of Albania during the period 2007-2011. The main result of the study: there is a negative correlation between money laundering process and economic growth rate in Albania during the specified period; there is a negative correlation between money laundering and import, but there is a positive correlation between money laundering and the government expenditure, as well a positive correlation between money laundering and export.

Money laundering in insurance

Money laundering in the process of globalization and liberalization has become a problem that requires cooperation between the countries, and also the adoption of measures for prevention not only at national, but also at the supranational level. After reviewing the most important regulations relating to money laundering, the author explains the stages of money laundering - placement, layering and integration. In addition, author pays attention to the analysis of risk based system, as a very important mechanism in prevention and detection of money laundering. The central part of the paper deals with money laundering in insurance. The author explains the process of money laundering in the insurance and cites practical examples. At the end, attention is given to situation in Serbia and there is pointed out that even though law contains a good solutions about money laundering, unfortunately, in practice it is not implemented always. So, this practice should be changed. Author has used comparative and analytical research methods.

The new frontier of money laundering: how terrorist organizations use cyberlaundering to fund their activities, and how governments are trying to stop them

This note examines the relatively new crime of cyberlaundering, and explains how terrorist organizations are using the Internet and cyberlaundering to fund their activities. In addition, this paper examines the current money laundering laws of the United States, as well as the attempts taken by the United Nations, the G7, the Organization of American States, and the Council of Europe to stem the laundering of money. The basic process of money laundering is described in detail, and it is explained how terrorist organizations in particular may use the Internet to launder their funds. The paper points out loopholes with respect to cyberlaundering in the money laundering laws of the United States and the multinational organizations mentioned above, and methods are proposed to close those gaps. Although implementation of the proposed methods would be expensive and time consuming, such measures would help stem the use of the Internet by terrorists in funding their activities.

Towards Applying Interactive POMDPs to Real-World Adversary Modeling

We examine the suitability of using decision processes to model real-world systems of intelligent adversaries. Decision processes have long been used to study cooperative multiagent interactions, but their practical applicability to adversarial problems has received minimal study. We address the pros and cons of applying sequential decision-making in this area, using the crime of money laundering as a specific example. Motivated by case studies, we abstract out a model of the money laundering process, using the framework of interactive partially observable Markov decision processes (I-POMDPs). We address why this framework is well suited for modeling adversarial interactions. Particle filtering and value iteration are used to solve the model, with the application of different pruning and look-ahead strategies to assess the tradeoffs between solution quality and algorithmic run time. Our results show that there is a large gap in the level of realism that can currently be achieved by such decision models, largely due to computational demands that limit the size of problems that can be solved. While these results represent solutions to a simplified model of money laundering, they illustrate nonetheless the kinds of agent interactions that cannot be captured by standard approaches such as anomaly detection. This implies that I-POMDP methods may be valuable in the future, when algorithmic capabilities have further evolved.

Commercial corruption and money laundering: a preliminary analysis

Purpose – The purpose of this paper is to analyze the relationship between commercial corruption and money laundering. The challenge of corruption in the private sector and its relationship with money laundering are neglected subjects. Corruption and money laundering often occur together with the presence of one reinforcing the other. Corruption generates billions of dollars of funds that will need to be concealed through the money laundering process. At the same time, corruption contributes to money laundering activity through payment of bribes to persons who are responsible for the operation of anti‐money laundering (AML) systems.

Money Laundering and its Economic Impacts in the Context of the Fight Against Terrorism

The sources of the process of “money laundering” and its influence on economic and law system of the country, the general sources of the capital obtained by criminal actions and the ways of its legalization are analyzed in the article. The rules of criminal capital in the Criminal Code of Lithuanian Republic or legalization of the capital, object, subject, objective and subjective aspects are reviewed. Having analyzed academic literature, also having used the personal and other specialists’ experience the concept of “money laundering” and its influence on the state economy are defined. International experience of the fight against “money laundering” is used in the article. The aim of the article is to study the conception of the process of “money laundering” on economic and juridical aspects. It is also important to envisage possible measures and methods which can help to fight with money laundering and disclose the connection between money laundering and financial support of terrorism. Besides, an assessment of the process of money laundering economically is offered in the article, and the general sources of illegal income are analyzed. It is pointed what influence is possible or takes place legalizing illegal money. Financial support of terrorism is one of the most important aims while using illegal money nowadays. Possible sources of financial support of terrorism and ways to conceal the real origin of illegal money, sources and organizers are found. Undoubtedly, the use of offshore companies is a concurrent of the process of money laundering. The bounds of possible amenability for money laundering are stated. To fight against financial support of terrorism Lithuanian Republic passed the law on the prevention of financial support of terrorism. The purpose of the law is to find out the remedies to prevent money laundering and (or) financial support of terrorism as well as institutions, which are responsible for these preventive measures realization. The law is passed with reference to European Union juridical acts and their ensured practice. Negative and positive aspects of the strategy of prevention of terrorism directed to fighting against terrorism are accentuated.

Cybercrime En Witwassen: Bitcoins, Online Dienstverleners En Andere Witwasmethoden Bij Banking Malware En Ransomware (Cybercrime and Money Laundering: Bitcoins, Payment Service Providers and Other Methods of Laundering Banking Malware and Ransomware Profits)

Cybercrime En Witwassen: Bitcoins, Online Dienstverleners En Andere Witwasmethoden Bij Banking Malware En Ransomware (Cybercrime and Money Laundering: Bitcoins, Payment Service Providers and Other Methods of Laundering Banking Malware and Ransomware Profits)

An inter‐temporal model of dirty money

Presents a basic model by which a representative agent chooses how to allocate his savings optimally between money of legal origin and dirty money; he holds the laundered dirty money, from which the money laundering process generates a positive transaction cost. Analyses the welfare of such an economy as a result of money laundering, also the conditions for reducing the incentives for this transforming of illegal into legal money: the incentive can be minimised if the effectiveness of anti‐money laundering increases. Concludes that the welfare of an economy where there is only legal money is greater than one in which legal and illegal activities coexist.

A guide to money laundering legislation

Describes the greatly extended UK legislation to prevent money laundering, which is defined as the process by which the proceeds of crime and the true ownership of those proceeds are changed so that the proceeds appear to come from a legitimate source; the three stages of the money laundering process are placement, layering, and integration. Details the provisions of the Proceeds of Crime Act (POCA) 2002, including substantive money laundering offences pursuant to POCA and to the Terrorism Act 2000, “failing to report” offences, and “tipping off” offences. Outlines the Money Laundering Regulations (MLR) 2003, which place additional anti‐money laundering administrative requirements on organizations undertaking specified regulated activities. Discusses how POCA and the MLR affect disclosure and legal privilege, and the practical effects of POCA and MLR on professionals such as finance organizations, estate agents, casinos and barristers.

Money laundering—a global obstacle

One of the biggest obstacles to maintaining an effective operating international financial system is money laundering. A global phenomenon and international challenge, money laundering is a financial crime that often involves a complex series of transactions and numerous financial institutions across many foreign jurisdictions. In addition, money laundering is also extremely difficult to investigate and prosecute. In this paper, I present a clinical examination of the money laundering process, the international extent of the problem and global efforts to introduce anti-money laundering measures and regulation in recent years.

Canadian Casinos Must Comply with New Money Laundering Rules

9 THE UNITED NATIONS DEFINES money laundering as “any act or attempt to act to disguise the source of money or assets derived from criminal activity.” Essentially, money laundering is the process whereby “dirty money” produced through criminal activity is transformed into “clean money,” that is, money where it is difficult or impossible to trace the criminal origin. As dirty money is constantly being introduced into the financial system, money is constantly being laundered. There are three recognized stages in the money laundering process:

The Moral Limits of the Crime of Money Laundering

I. THE PROBLEMATIC Clean money is worth more than dirty money. Clean money—money untainted by criminal association—can be invested in profitable activities or spent on consumption, more or less conspicuous, without risk of recrimination. Dirty money, generally speaking, can only be invested or spent less profitably, less visibly, and at a risk of punishment. It also carries the risk of being used as evidence of the initial crime. With the exceptions of small thefts of fungibles, like cash and the fantasy case of the criminal art collector who wishes to sit alone with a painting so famous that it could not be resold, virtually all income from criminal activities must be disguised to be of use to the criminal. Money laundering 1 is that process of disguise. Analysis of money laundering, in terms of criminal markets, holds that secrecy has value. 2 People will pay for secrecy because it costs less than disclosure. To the person in possession of money deriving from illegal sources, the dangers of disclosure relate to the possibility of prosecution and imprisonment. The process of money laundering holds out the prospect of gaining lasting secrecy for the information dealing with the provenance of the money. On the demand side, a person holding assets