In previous blogs I discussed “What is money laundering (http://shaileshdash.com/2016/01/12/what-is-money-laundering/)” and “How Money Laundering Works (http://shaileshdash.com/2016/01/24/how-money-laundering-works/)”.
A question that comes up from time to time is whether the act of money laundering is illegal and immoral.
Taking the Profit Out of Crime
The steps taken to launder money are not, in themselves, illegal. However, as the definition of money laundering requires that the assets themselves have been derived from crime, the detection of money laundering activities is essential to the fight against those crimes themselves.
Considering it an offence is rationalised by the belief that it is wrong to benefit from the proceeds of crime. Thus, it is also considered a crime to provide financial services to those seeking to profit from crime. Increasing awareness of money laundering (within both the private and public sector) in combination with the needed legal and regulatory changes allows the authorities to make headway in combating the problem.
Why it is illegal all over the world?
Money Laundering is considered as an illegal and immoral activity all over the world. Making money laundering illegal is an attempt by governments to prevent and control the crimes related to the money and restrict the illegal transfer of funds to different channels. If left unchecked, this ill-gotten money could easily be used by both criminals and terrorist groups to carry out a variety of crimes.
Money laundering has a negative effect on the global economy. It promotes smuggling, corruption, fraud, drug and human trafficking. Money laundering has been linked to the illegal purchase of weapons and arms which are then used to equip criminal and terrorist groups.
Most of the time these processes are done so effectively that detection become truly challenging.