money laundering

laundering simple means washing or clearing thus money laundering means clearing money but the question now come why money require cleaning its the dirty money which requires clearing dirty money refers to all the money and wealth which has been aquire through illegitimate or illegal means

• illegal arms sales
• smuggling and other organized crime
• drug traffficking
• prostitution rings
• inside trading
• bribery
• computer fraud schemes
• tax excise duty evasion
• embezzlement
  so we can say that money laundering is the process of conversion of the dirty money to make it appear as legitimate money this process involves following steps
  placement -layering -integration
  placement the process of placing through feposite or other means unlawfl cash proceeds into traditional financial institution and banks at this stage cash derived from criminal activity is infused into the financial system the moneyies placed into the financial system or retail econemy or are smuggled out of the country the aims of the launderer are to remove the cash from the location of acquisition so as to avoid detection from the authorities and then transfer in into other asset forms for example pay order
  INTEGRATION
  intergration is the final stage of the process whereby criminallyb derived property that has beenplaceds and layerd is return to the legitimate econimical and financial system and assimilated with all others assets in the system intergation of the cleared money into the economy is accomplished by the laundered making it appear to have been legelly earnrsd by this stage it is exceedingly difficult to distingush legal and illegil wealth
  COMBATING FINANCIAL TERRORISM
  combiting the financing of terrorism involves investing analyzing deterring
  and pervating sources of funding for activities intended to achieve political religious or idiological goals through violence and the threat of voilence againest civilians