AML KYC Tutorial | Money Laundering Defined

Introduction to Money laundering

what is money laundering

What is Money Laundering?

It is the process of concealing the source of money obtained by illicit means such as gambling, corruption, extortion, drug trafficking, human trafficking, etc., Money is moved around the financial system again and again in such a manner that its origin gets hidden. It is the process of making dirty money clean.

In other words, it is ‘Any actual or attempted act aimed at concealing or camouflaging the nature of illegally or illegitimately earned property to make it look as proceeds from legal sources’. Criminal organizations utilize this process to enable them to exploit further criminal opportunities in a systematic and large scale manner.

Estimates suggest that the size of the problem is over $500 billion annually. Money laundering is a very serious issue, although often thought as a victimless crime. Without it, international organized crime would not be able to function.

 

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