Skip to main content

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

Comments

Post a Comment

Popular posts from this blog

How-to overcome sendentary lifestyle.

Some interesting points on overcoming sedentary lifestyle. There are many other routine ones, just try googling that. 1. Some not so routine tips on avoiding the sedentary lifestyle 2. Walking while talking on phone is a good way to get expressive and burn calories too. 3. Don't use the phone to call someone a short walking distance away. Walk and visit whenever possible. Same for grocery shopping. 4. Catch a different bus that makes you walk a bit more. You can catch a bus from a different stop, a little farther from your regular stop. 5. Pacing the length of the subway platform whenever the train/bus is late. 6. Dance Source: from various places on net
Post a Comment
Read more

Cognitive rules of business presentations

In his recent book, Clear and to the Point, Kosslyn explained that the four rules of PowerPoint are: The Goldilocks Rule, The Rudolph Rule, The Rule of Four, and the Birds of a Feather Rule. Here's how they work. The Goldilocks Rule refers to presenting the "just right" amount of data. Never include more information than your audience needs in a visual image. As an example, Kosslyn showed two graphs of real estate prices over time. One included ten different numbers, one for each year. The other included two numbers: a peak price, and the current price. For the purposes of a presentation about today's prices relative to peak price, those numbers were the only ones necessary. The Rudolph Rule refers to simple ways you can make information stand out and guide your audience to important details -- the way Rudolph the reindeer's red nose stood out from the other reindeers' and led them. If you're presenting a piece of relevant data in a list, why not mak...
Post a Comment
Read more

Definition of Cult Stocks

From a blog: A classification describing stocks that have a sizable investor following, despite the fact that the underlying company has somewhat insignificant fundamentals. Typically, investors are initially attracted to the company's potential and accumulate positions in speculation that its potential will be fulfilled, providing the investors with a substantial payout. While most of these cult stocks promise they will be the next big story after they make a new discovery or get the newest contract from the government, most do not provide investors with anything other than the story. Furthermore, these stocks typically generate very little, if any, revenue at all. For example, many micro-cap biotech stocks are cult stocks. While they promise that they are going to be working on a miracle compound or drug, most of them do not have any source of income as they slowly burn away their initial capital in research and development. However, some cult stocks do occasionally make good on...
Post a Comment
Read more