Why Money Laundering is done?
Posted by Ripon Abu Hasnat on Monday, May 26, 2014 | 0 comments
Criminals engage in money laundering for three main
reasons:
First, money represents the lifeblood of the organization that
engages in criminal conduct for financial gain because it covers operating
expenses, replenishes inventories, purchases the services of corrupt officials
to escape detection and further the interests of the illegal enterprise, and
pays for an extravagant lifestyle. To spend money in these ways, criminals must
make the money they derived illegally appear legitimate.
Second, a trail of money from an offense to criminals can become
incriminating evidence.
Criminals must obscure or hide the source of their wealth
or alternatively disguise ownership or control to ensure that illicit proceeds
are not used to prosecute them.
Third, the proceeds from crime often become the target of
investigation and seizure. To shield ill- gotten gains from suspicion and
protect them from seizure, criminals must conceal their existence or,
alternatively, make them look legitimate.
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