Essay on money laundering - 2736 Words

nbsp;nbsp;nbsp;nbsp;nbsp;Money laundering is the routing of illegal profits from bank to bank to disguise its existence. The illegal profits are usually made through activities such as drug trafficking, prostitution rings, illegal arms sales, and various other things. Unfortunately money laundering is a serious crime that is still prevalent in the United States and other countries. The Russian mafia, the Triad or Chinese mafia, and the Columbian drug cartel are just a few of the groups that partake in money laundering. No one knows exactly how much money is laundered yearly but it is estimated to be about $100 billion in the United States. The United States is not the only country affected by these numbers. The estimated amount of†¦show more content†¦Most of the money laundered today is done by some sort of organized crime, whether it is a drug cartel, illegal arms sale, smuggling, prostitution rings, the Mafia, or corporations. Organized crime has existed in the United Sta tes for many years. Some of the organized crime groups known for money laundering are: the Russian Mafia, the Triad, other wise known as the Chinese Mafia and the Yakuza. All of these groups are known for a variety of illegal activities that involve receiving substantially high profits. Some of these activities may include drug trafficking, illegal arms sale, and various other things. Recently law enforcement has discovered that corporations have been helpers in laundering money. This discovery leads back to the Black Market Peso Exchange. These corporations do not have a direct involvement with the laundering, but are a helping hand at times. Many times corporations are the supplier of goods for the broker. The perks that go along with being the supplier entail getting an exchange rate better than the market. An example of this is if a corporation has pesos that they need to exchange back into dollars, and the exchange rate is 1,000 pesos for 1 U.S. dollar, the broker may discount the rate to 880 pesos for 1 U. S. dollar. The initial stage occurs when a criminal, or a group of criminals, involved in an illegal activity make a substantial sum of money. The money is then put into theShow MoreRelatedMoney Laundering Essay1211 Words   |  5 PagesAccording to Hopton (2009), money laundering tends to allocate dirty money around the world on the basis of avoiding national controls and therefore tainted money tends to flow to countries with less stringent controls. Money laundering has a major affect on the businesses that were used for the crime. The integrity of the bank and their financial services are depended heavily on professionalism and ethical standards. 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