Money laundering according to the Act is when any person in or outside Nigeria directly or indirectly conceals or disguises the origin of; converts or transfers; removes from the jurisdiction; acquires, uses, retains or takes possession or control of; any fund or property, knowingly or which he/she should reasonably …
What is money laundering in simple terms?
Money laundering is the illegal process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source. The money from the criminal activity is considered dirty, and the process “launders” it to make it look clean.
What are some examples of money laundering?
Common Money Laundering Use Cases
- Drug Trafficking. Drug trafficking is a cash-intensive business. …
- International and Domestic Terrorism. For ideologically motivated terrorist groups, money is a means to an end. …
- Embezzlement. …
- Arms Trafficking. …
- Other Use Cases.
What are the 3 stages of money laundering?
There are usually two or three phases to the laundering:
- Integration / Extraction.
What is the punishment for money laundering?
If prosecuted as a misdemeanor, Money Laundering can be punished by up to a year in jail and court fines. If prosecuted as a felony, a sentence can carry up to three years in prison and a maximum fine of $250,000 or twice the amount of money laundered, whichever is more.
What are the 4 stages of money laundering?
The stages of money laundering include the:
- Placement Stage.
- Layering Stage.
- Integration Stage.
What are the classes of money laundering?
In UK law money laundering is defined in the Proceeds of Crimes Act 2002 (POCA) and includes all forms of handling or possessing criminal property, including possessing the proceeds of one’s own crime, and facilitating any handling or possession of criminal property.
How can you tell if someone is laundering money?
Signs of Money Laundering
- Unnecessary Secrecy and Evasiveness. As money laundering’s entire point is to confuse where the money came from, money launderers are typically very evasive regarding these types of questions. …
- Investment Actions that Make No Sense. …
- Inexplicable Transactions. …
- Shell Companies. …
- Report Money Laundering to the SEC.
How do u launder money?
Money laundering involves three basic steps to disguise the source of illegally earned money and make it usable: placement, in which the money is introduced into the financial system, usually by breaking it into many different deposits and investments; layering, in which the money is shuffled around to create distance …
How do drug cartels launder money?
The simplest trade-based method is to convert money into a commodity. Drug traffickers do this by buying such easily sold items as clothes or electronics from a legitimate company in the U.S., and then selling the items on the other side of the border for pesos.
What is the first step of money laundering?
Pre-Layering: The money laundering process begins after criminals acquire illegal funds from criminal activity and seek to introduce them into the legitimate financial system. Accordingly, the first stage of the money laundering process is known as “placement.”
Can you money launder with Bitcoin?
Most cryptocurrency money laundering is concentrated in a few online services, opening the door for law enforcement actions. Criminals who keep their funds in cryptocurrency tend to launder funds through a small cluster of online services, blockchain investigations firm Chainalysis said in a report last week.
What is the most common way to launder money?
The classical methods of money laundering include the structuring of large amounts of money into multiple small transactions at banks (often called as smurfing) and the use of foreign exchanges, cash smugglers and wire transfers to move money across borders.
How can I prove I am not laundering money?
The government must prove that the source of the money was illegal activity. If they cannot prove that the source of the money was illegal activity, or if the source of the money cannot be traced at all, the prosecution will likely be unable to prove beyond a reasonable doubt that the money was laundered.
What happens if you are found guilty of money laundering?
The offence is triable either way. The maximum sentence for this offence is 14 years’ imprisonment on indictment or a fine or both and six months’ imprisonment or a fine or both summarily. For further information, see Practice Note: Money laundering offences—acquisition, use and possession.
Is money laundering civil or criminal?
Money laundering has been a crime in the United States since 1986, making the United States one of the first countries to criminalise money laundering conduct. There are two money laundering criminal provisions, 18 United States Code, Sections 1956 and 1957 (18 U.S.C. §§ 1956 and 1957).