Money laundering as a crime

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Money Laundering is a serious crime that affects financial systems around the world. It is a form of organized crime used to disguise the source of illegally obtained funds. Money Laundering involves the conversion of the proceeds of criminal activity into legitimate business profits. 

Money launderers use a series of financial transactions that are often complex and obscure to transfer the money derived from criminal activity and disguise its origin. This process is used to make it appear as if the money was made through legitimate businesses or investments, such as real estate, stocks, bonds, art, jewelry, coins, and virtual assets. 

The term “money laundering” is derived from the phrase “washing money.” Money laundering is illegal because it effectively disguises and conceals the source of illegally obtained funds and allows criminals to benefit from their activities. Money laundering schemes can vary greatly in complexity. Generally, criminals use a combination of false bank accounts, false businesses, offshore accounts, false identities, and various types of false documents in order to hide the origin of the money and the extent of their operations. 

Money laundering has an impact on countries in many ways. It is used to finance terrorism, support drug traffickers, and move money internationally from criminal organizations. It allegedly affects the international market by creating an artificial advantage for the launderer and weakening economic factors through the associated fraud activities. It also contributes to money being hidden from tax authorities, and low-income countries are vulnerable to having.

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