Money laundering is the process of concealing the origin of money obtained from illegitimate sources by passing it through complex sequence of financial transactions and making it appear to be originated from legal activity. Illegal arm sales, terrorism funding, smuggling, drug trafficking, insider trading, fraud schemes, bribery etc. are some examples of illegal activities prohibited by law. In simpler terms, money laundering means cleaning of dirty money. Process of Money Laundering Placement – Placing illegal cash proceeds with banks and other financial institutions onshore and offshore in smaller denominations. Layering – Creating complex layers of financial transactions to make it difficult to trace the origin of money. The transactions might be channelled through purchase & sales of financial securities. Integration – Integrating the money into legal system by investing into business, real estates and luxury assets. Methods of Money Laundering Structuring / Smurfing – It is a method of placement where the illegal money collected is broken into smaller deposits to place at different banks. This is done to avoid any suspicion of origin of money. Shell Companies – This involves creation of fake companies that are registered and exist in papers but hold neither physical location nor operational activities are done. Bulk Cash Smuggling – This involves smuggling cash to foreign countries to deposit illegal money in offshore bank which hold greater secrecy; generally countries considered as tax haven. Round Tripping – Shipping back the money deposited in offshore financial institutions as foreign direct investment. Act - Financial Action Task Force – Formed in 1989 by G7 countries to develop and ensure an international response to combat money laundering. The objectives of the FATF were to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. PMLA (Prevention of Money Laundering Act) 2002 – The act passed to stop money laundering and punish those involved directly or indirectly in illegal activity. As per this act whoever commits money laundering shall be punishable with imprisonment of about 3 to 10 years and shall also be liable to pay fine. Thank you for watching Subscribe to DevTech Finance

1. DEVTECH FINANCE
WEALTH MANAGEMENT
MONEY
LAUNDERING

2. INTRODUCTION
• Money laundering is the process of concealing the origin of money obtained
from illegitimate sources by passing it through complex sequence of financial
transactions and making it appear to be originated from legal activity.
• Illegal arm sales, terrorism funding, smuggling, drug trafficking, insider
trading, fraud schemes, bribery etc. are some examples of illegal activities
prohibited by law.
• In simpler terms, money laundering means cleaning of dirty money.

3. PROCESS OF MONEY LAUNDERING
DIRTY MONEY
PLACEMENT
LAYERINGINTEGRATION
LEGAL MONEY

4. PROCESS OF MONEY LAUNDERING
• Placement – Placing illegal cash proceeds with banks and other
financial institutions onshore and offshore in smaller denominations.
• Layering – Creating complex layers of financial transactions to
make it difficult to trace the origin of money. The transactions might
be channelled through purchase & sales of financial securities.
• Integration – Integrating the money into legal system by investing
into business, real estates and luxury assets.

5. METHODS OF MONEY LAUNDERING
• Structuring / Smurfing – It is a method of placement where the illegal
money collected is broken into smaller deposits to place at different banks.
This is done to avoid any suspicion of origin of money.
• Shell Companies – This involves creation of fake companies that are
registered and exist in papers but hold neither physical location nor
operational activities are done.
• Bulk Cash Smuggling – This involves smuggling cash to foreign countries
to deposit illegal money in offshore bank which hold greater secrecy;
generally countries considered as tax haven.
• Round Tripping – Shipping back the money deposited in offshore financial
institutions as foreign direct investment.

6. PREVENTION OF MONEY LAUNDERING
• Financial Action Task Force – Formed in 1989 by G7 countries to develop
and ensure an international response to combat money laundering. The
objectives of the FATF were to set standards and promote effective
implementation of legal, regulatory and operational measures for combating
money laundering, terrorist financing and other related threats to the integrity
of the international financial system.
• PMLA (Prevention of Money Laundering Act) 2002 – The act passed to
stop money laundering and punish those involved directly or indirectly in
illegal activity. As per this act whoever commits money laundering shall be
punishable with imprisonment of about 3 to 10 years and shall also be liable
to pay fine.

7. THANK YOU FOR WATCHING
DEVTECH
FINANCE