lecture_recording_on_20_February_2025_at_12.30.07_PM

Money laundering is the process of making illicitly obtained funds appear legitimate.
Relevant even if funds were obtained abroad, meaning the crime transcends territorial limits.

Criminal law applies only in jurisdictions where the crime takes place.
Money laundering is considered a territorial crime despite international elements.

Placement
- Introduction of illicit funds into the financial system.
- Common methods: bank accounts, safety deposit boxes.
Layering
- The process of concealing the origin of the funds.
- Involves transferring money between different accounts or using tax havens to break the trail of the money.
- Techniques include:
  - Using shell companies.
  - Moving money to countries with weak financial regulations.
Integration
- The final phase where laundered money is reintroduced into the economy, appearing as legitimate income.
- Common investments include real estate, businesses, and other assets.

The global fight against money laundering emphasizes prevention over mere punishment.
Effective measures are designed to deprive criminals of the profit from their illicit activities.
Emphasizes the need for international cooperation to track and confiscate moved assets.

Cash remains a significant medium for transferring illicit funds despite increased detection risks.
Measures include monitoring cross-border cash movements to prevent money laundering.
Example: Criminals may hide cash inside shoes to evade detection at airports.

Cryptocurrency presents new challenges in tracking illegal transactions.
The decentralized and anonymous nature of cryptocurrencies can facilitate money laundering.

United Nations: First international body to address money laundering through the 1988 Convention Against Illicit Traffic in Drugs.
Financial Action Task Force (FATF):
- Formed in response to drug trafficking issues; focuses on measures to combat money laundering and financing terrorism.
- Develops recommendations for member countries to implement strong anti-money laundering systems.

FATF evaluates countries to assess their effectiveness in combating money laundering.
Certification of compliance is crucial for legitimacy in international finance.

Money laundering must be considered a distinct crime from the predicate offense (e.g., drug trafficking).
Countries must criminalize money laundering related to serious crimes as defined by FATF recommendations.

The original illicit act leading to the funds is termed the "predicate offense."
Post-Palermo Convention, the definitions expanded to encompass all serious crimes.

A principle requiring that the act constitutes a crime in both jurisdictions involved in prosecution or extradition.
If the act is not a crime in the prosecuting country, the individual cannot be charged.

Criminal liability in money laundering requires intent or serious negligence concerning illicit funds.
Proving money laundering often relies on indirect evidence or circumstantial facts like sudden wealth increases without justification.

A person can commit the illicit act (predicate offense) and subsequently launder the proceeds (money laundering) without the need for a prior conviction of the predicate offense.
This distinction allows for more efficient prosecution of money laundering crimes.

Countries are encouraged to create effective penalties for money laundering, ensuring they are proportionate and dissuasive.
Specific forms of participation in money laundering must be defined clearly by legal jurisdictions.

The fight against money laundering is a multi-faceted issue requiring cooperation between countries and various sectors of society.
Tools, regulations, and international cooperation efforts are vital for effective enforcement and to minimize the impact of organized crime.