Essay Title: 

Money Laundering

March 24, 2016 | Author: | Posted in social issues, social sciences

MONEY LAUNDERING

Introduction

Today ‘s emerging business developments pose a question on whether or not company performances can be measured by its profitability and its return on assets . There is a need to protect and at the same time to increase the interests of its shareholders , and reduce , if not , pay off its Company ‘s debts . However , in the process of achieving these business performance measurements , the management , most especially , is faced with a dilemma on whether or not to come up with accurate and honest assessment of its company accounts [banner_entry_middle]

especially when faced with some economic difficulties or uncontrollable and mismanaged accounts . Such business or company is vulnerable to twist facts and figures in to hide the truth behind its books of accounts just to save its image of financial stability and security in the eyes of the public , and its shareholders and creditors

Money laundering and the world of criminal financing prevention have changed dramatically . The attention paid to these s by governments worldwide has resulted in greater regulatory pressure and scrutiny of financial institutions . High-pro cases and multi-million penalties by governments around the world are becoming more and can no longer be ignored by anyone in the field

Basically no financial institution , regardless of size , is outside the reach of new laws and regulations . A violation or lack of knowledge of these new rules poses devastating dangers to financial and non-financial institutions and can ruin businesses and careers . Damage to a company ‘s reputation can be irreparable . These new dangers and risks present strong challenges

Staying informed of risks , challenges and best practices is a critical step toward protecting yourself and your organization . This delves into the money laundering business and the many facets of money laundering . This will also look into the various methods used by different international and criminal organizations as well as the success of law enforcements in preventing the crime . The Enron scandal will be used as an example to gain valuable lessons on how observable business ethics are important in running a business

Definition of money laundering

Money laundering ‘ is the term used to refer to a broad category of offenses that involves financial transactions with funds or monetary instruments gained through criminal activity (Money Laundering Working Group . Summary of Findings . The law is very specific as in this area and according to the Title 18 of the U .S . Code , there are four different types of money laundering violations . The subsection a (1 ) of 18 U .S .C . 1956 considers it illegal to conduct a financial transaction from unscrupulous origins or those known to be from specified unlawful activity (Money Laundering Working Group . Summary of Findings

This definition evolves through time and Wikipedia states that it has expanded to ways in which criminals process these dirty ‘ money generated illegally through several transmissions and deals such that the source is illegally hidden and the money seems clean funds or assets . This is accomplished through tax evasion or false accounting… [banner_entry_footer]

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