Money laundering

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  • Publié le : 18 juin 2010
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Money laundering is a generic term used to describe any process that conceals
the origin or derivation of the proceeds of crime so that the proceeds appear to
be derived from a legitimate source.Money laundering is sometimes wrongly regarded as an activity that is
associated only with organised crime and drug trafficking. It is not. It occurs
whenever any person deals with anotherperson's direct or indirect benefit from
The term ‘money laundering’ is in fact a misnomer. Often it is not money that
is being laundered but other forms of property that directly or indirectlyrepresent benefit from crime. Any form of tangible or intangible property is
capable of representing another person’s benefit from crime.
Traditionally, money laundering has been described as aprocess that takes
place in three stages as follows:
Placement – The stage at which property (usually in the form of cash) is
introduced into the financial system;
Layering – The stage at which theproperty undergoes a series of transactions,
thus concealing its origin and making it appear to be legitimate;
Integration – The stage at which the laundered money is utilised for the benefit
ofcriminals within the legitimate economy.
In reality, the three stages often overlap and the benefit from many crimes
including most financial crimes does not need to be ‘placed’ into the financialsystem. Licensees in Mauritius are most likely to be exposed at the layering
and integration stages of the money laundering process.
Money laundering is a crime that is most often associated withbanking and
money remittance services. Whilst banks are often an essential part of
successful laundering schemes, management companies and their client
companies, including trust administration andrelated services that they offer
are also highly vulnerable to abuse by money launderers. This is because of the
opportunities that they present to conceal and disguise ownership and interest in...