Money laundering is addressed in Article 3.1nof the United Nations Vienna Convention of 1988 which defines money laundering as:
“The transfer of property, knowing that such property is the proceeds a crime (s), for the purpose of concealing or disgusting the i11egal origin of the property or to assist a person who commits such crime” Is involved in (languages) escaping the legal consequences of this actions.”
Money laundering is a process that typically follows three steps to release laundered funds into the legal financial system.
3 Stages of Money Laundering
Placement (i.e. transferring funds in direct connection with the crime)
Disguising (i.e., disguising a trail to thwart pursuit)
Integration (i.e. providing money to the criminal through legal means)
In reality money laundering cases may not have all three steps, some steps may be combined, or several steps may be repeated several times. For example, cash from drug sales is split into small amounts then deposited through “money malls” and later transferred to a shell company as payment for services. In this case placement and layering are done in one step.
The estimated amount of global money laundering in a year is 2 – 5% of global GDP, or $800 billion – $2 trillion in current US dollars. Due to the clandestine nature of money laundering, however, it is difficult to estimate the total amount that passes through the laundering cycle.
Terrorists and terrorist organizations generally need to rely on money to sustain them and carry out terrorist acts. Terrorist financing includes the means and methods used by terrorist organizations to finance activities that threaten national and international security. Money enables terrorist organizations to carry out terrorist activities, which can be obtained through various means. Money can be obtained through both legitimate means (i.e. profits from businesses and charities) and criminal means (i.e. drug trade, arms trafficking, kidnapping for ransom).
While a money laundering scheme is usually circular and the money ultimately ends up with the person who originated it, the process of terrorist financing is usually linear, and the money generated goes to terrorist groups and activities. It is used to spread.
It can be divided into following steps
In general, proliferation is the spread of nuclear, radiological, chemical or biological weapons. Their means of delivery such as missiles, rockets and other unmanned systems as well as related materials, such as WMD sensitive materials, equipment and technology If adequate safeguards are not established, their maintenance and sensitive materials are not enforced, the technology, services and expertise may be accessible to individuals and entities seeking to use them in WMD programs. . They may also become accessible by terrorists pursuing chemical, biological, radiological or nuclear (CBRN) capabilities.
Although there is still no internationally agreed definition of proliferation financing, it can be defined as providing financial services for the transfer and export of nuclear, chemical or biological weapons. Their means of delivery and related materials This includes financing trade in proliferation-sensitive goods, but may also include other financial support for individuals or organizations engaged in proliferation.
The financial elements of the WMD program can be divided into three phases:
- Raising of funds
- Obscuring of funds
Anyone who performs or participates in any of the acts described in article two of this law shall commit the crime of money laundering, including the chairman of the board of directors of financial and non-financial institutions, board members, Owners, employees, authorized representatives, auditors or their hired hands acting in these capacities, without prejudice to the criminal liability of financial and non-financial institutions if the crime is committed in their name or on their account. be
Financial and non-financial institutions shall not conduct any financial or commercial transactions under false or unknown names. Clients’ identity will be verified according to official documents, at the initiation of dealings with clients or when conducting commercial dealings whether directly or on behalf of clients. These bodies shall authenticate the official documents of bodies having corporate capacity showing the name of the body, its address, the names of the owners and managers authorized to sign on its behalf, and the like, as prescribed by this law. provided in the regulations.
On the availability of sufficient indications and evidence to suggest that a complex, large or unusual deal or transaction has been carried out or that a transaction raises doubts as to its nature and purpose, or Money laundering, terrorist financing, terrorist acts, or terrorist organizations, financial and non-financial institutions should immediately take the following steps:
A unit called the “Financial Investigation Unit” will be established to deal with money laundering. Part of his responsibility will be to receive information, analyze it and prepare reports on suspicious transactions in all financial and non-financial institutions. The implementing regulations of this law shall define the seat of the unit, its composition, powers, and procedure for the performance of its duties as well as its affiliation.
The Financial Investigation Unit shall, upon establishment of suspicion, request the authority with jurisdiction over the investigation to apply a freeze on funds, properties and sources associated with the crime of money laundering, for a period exceeding twenty days. don’t be If the preventive seizure is required to continue for a longer period, it shall be as per the judicial order of the competent court.