Money Laundry

FINANCE ACTIVITY

WHAT DO YOU MEAN BY WORD •HAWALA

MONEY LAUNDERING

What is Money Laundering? • Money laundering is the process, by which, large amounts of illegally obtained money is given the facade of having a legitimate source

PROCESS OF MONEY LAUNDERING • PLACEMENT • LAYERING • INTEGRATION

White-collar laundering: Eddie Antar • Placement: Antar made a series of separate deposits to a bank in Israel. On one trip, he made 12 deposits in a single day.

• Layering: Before U.S. or Israeli authorities had a chance to notice the suddenly huge balance in the account, Antar had the Israeli bank wire transfer everything to Panama, where bank secrecy laws are in effect. From that account, Antar could make anonymous transfers to various offshore accounts.

• Integration: Antar then slowly wired the money from those accounts to the legitimate Crazy Eddie's Electronics bank account, where the money got mixed in with legitimate dollars and documented as revenue

SOME OTHER METHODS • Black market • Smurfing • Overseas banks • Shell companies • Investing in legitimate businesses

Smurfing

Overseas Bank

QUIZ • According to international monetry fund how much is laundered each year? • • • •

60 million 600 million 60 billion 600 billion

House of majority Tom Delay stepped down in 2005 after being laundering charges • True • False

Which former World Leader was convicted in 2003 of money laundering involving swiss bank? • • • •

Benazir Bhutto Boris Yeltison Bill Clinton Jacques Chirae

• • • •

Which of the following term is used to describe the process of sending money through multiple financial institute to make it difficult to track? Integration Placement Camouflages Layering

• In the US, Banks must report deposits of $10000 or more. What is the term for breaking up large sums of money into smaller amount? • • • •

Smuggling Shorting Shrinking Smurfing