Money Laundering Definition

Topic Progress:

Money Laundering Definition

Money Laundering is the act of concealing the transformation of profits from illegal activities and corruption into ostensibly “legitimate” assets. The dilemma of illicit activities is accounting for the origin of the proceeds of such activities without raising the suspicion of law enforcement agencies. In addition, Money Laundering is the generic term used to describe the process by which criminals disguise the original ownership and control of the proceeds of criminal conduct by making such proceeds appear to have derived from a legitimate source.

Whenever ML is suspected, a Suspicious Activity Report (SAR) is required to be documented. SAR is a document that financial institutions must file with the Financial Crimes Enforcement Network (FinCEN) or with the National Crime Agency (NCA) following a suspected incident of money laundering or fraud.

Leave a Reply

Your email address will not be published. Required fields are marked *