Money laundering, or what is known as the money laundering process, is the process of transferring a large amount of money obtained from some illegal operations and converting it into legally tradable funds, and this process has serious economic and social consequences and consequences that we highlight through this article. , where we learn about the most important financial and economic aspects of money laundering, so let us learn about them through the next few lines.
What is money laundering?
Money laundering or money laundering is the process of transferring money from illegal ways in which money was obtained, to illegal ways, by introducing money into public activity and concealing and covering the sources through which this money is obtained, using illegal investment means. .
Money laundering is considered in the eyes of the law a financial and economic crime that has many pillars, and negatively affects the economies of countries, because this crime can be employed in a group of public activities, and therefore these funds may be influential in various economic fields.
Money laundering crime tools
Money laundering is a process in order to take place, it must have integrated tools, and these tools are used by criminals, and they vary between simple and traditional ways to recycle money that comes from illegal ways to turn it into legal legal ways, and these tools are like illegal trade such as drug trade and illegal weapons licensed drugs, and drugs that do not meet the standards and specifications, these funds of course came from an illegal method, so they are invested in commercial channels to facilitate these illegal operations.
The use of financial institutions is one of the most important tools, means, and methods for criminals who carry out the process of money laundering, and these institutions provide legal and financial cover for them, in addition to real estate leasing or what is known as real estate investment, where some invest in buying and renting apartments, villas, and palaces, and then replacing unauthorized funds. Legal and legal funds are obtained through this investment.
Loans are also one of the most common methods used in the money laundering process, as loans linked to a certain interest are approved by providing illegal money with loan amounts, thus collecting the interest rate on the value of these illegal funds after a certain period of time.
Money laundering criminals use modern technological means and methods to recycle and launder money, through Internet technology, which is considered one of the modern means of money laundering, as criminal gangs depend on it for financial investments such as stocks and bonds, through websites operating in these areas, and thus investment is made Unwashed money.
What are the stages of a money laundering crime?
The money laundering crime depends on some of the stages that criminals plan, and these stages are between the deposit stage, which is the first stage of the money laundering crime and depends on the disposal of funds by transferring them to bank deposits in banks, as well as investment financial institutions, in addition to replacing them with money Clean and legal.
The second stage in money laundering is the collection method, which is a method that criminals rely on through a group of projects and financial investments that guarantee to cover the sufficient costs of the illegal and legal operations carried out by them, as this method helps in providing camouflage for the operations in which money laundering takes place.
The last stage of money laundering is the mixing of illegal funds with other legitimate funds in which the funds are mixed together, and thus it is difficult to identify these illegal funds.
Economic, political and social consequences of the crime of money laundering
The money laundering process has serious economic, social and political implications. From an economic point of view, the money laundering process affects the national economy of every country in which these operations take place, due to the decline of legal capital and its replacement with illegal money, and this leads to a decline in economic development and financial investments, which affects the The value of the local currency compared to other foreign currencies.
As for the political aspect, the money laundering process threatens the political stability of countries, due to the use of this laundered money to finance many illegal and criminal operations, including illegal operations such as drug and arms trade, which spreads security chaos and political corruption in the country.
From a social point of view, there are many consequences that affect society through the process of money laundering, as many types of illegal trade that affect groups of society are spread, such as drug trade that spreads among young people as well as illegal trade operations that lead to the spread of poverty and others serious effects on society.
How is money laundering done?
Countries are based on combating money laundering through many possible means, such as:
Establishing criminal units specialized in combating money laundering. Control of funds at home and abroad. Imposing control over movable money and various investments in the country. Enact strict legislation for criminals who commit this crime.
Money laundering is a serious crime that affects society economically, politically and socially. Therefore, countries are based on combating this crime, which may destroy societies. In this article, we learned about many features of this crime.