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Money Laundering

Money laundering, the metaphorical "cleaning of money" with regard to appearances in law, is the practice of engaging in specific financial transactions in order to conceal the identity, source and/or destination of money and is a main operation of underground economy.

Money laundering is often described as occurring in three stages: placement, layering, and integration.

Money laundering involves three stages, placement, layering and integration. The placement stage refers to the way money launderers will put the “hot” money in banks or invest them in legitimate business transactions. Others will use the money to buy goods, services and properties, which they can later resell to other people.

The next stage, is layering. Money launderers will try to disguise the origin of the funds by leaving a complicated paper trail. Often times, the money once deposited in a bank will be wired or transferred to different offshore accounts that will be very hard to trace. Some choose to deposit the money in foreign banks in jurisdictions that limit foreign legal intervention and have strict bank secrecy laws.

The final stage is integration. The funds have been transferred into the mainstream economy and it is now difficult to differentiate if the source is legal or not.

The major objectives of Money Laundering activities are:
*Concealing the true ownership of illegally-obtained money and
*Placement, layering and integration of such funds

Money Laundering - Useful links
Money Laundering
Money Laundering - Wiki Source
Money Laundering FAQs
Anti-Money Laundering - Wiki Source
Anti-Money Laundering
Smurfing - Wiki Source
Sarbanes-Oxley Compliance : Part 1, Part 3
SOX - Wiki source
SOX - White paper
Operations Risk Management
Protecting consumers and companies
Summary of Sarbanes Oxley Act 2002 [Copy of Act (full)]
Sarbanes-Oxley Forum
PCAOB (Official site)
Information technology controls
Information technology audit

:) Falkor

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