Money laundering is a term that is used to describe the attempt of giving the illegal money a legitimate form then investing the money in legal industries to hide the real source of the money. However, drug trading, weapons trading, and prostitution are examples of money laundering as people here tend to invest the money in other legal industries. Moreover, money laundering is considered as one of the dangerous phenomena that many countries suffer from. It affects the economical and the social state as the rate of bribery, fraud, and tax evasion increase. In the following few lines, we will tackle all aspects of money laundering.
There are two types of money laundering. The first one is that the source of the money itself is not legal like weapon or drugs, then the money is turned to be used again in a right legal industry. The second type is the backwash money laundering or the reverse way of money laundering. It means that the source of the money is legal and right then investing the money in an illegal industries likes weapons or drugs.
There are three stages of money laundering which are deposit, camouflage, and integration. Deposit means that there are large amounts of money and the owner wants to put or deposit the money in the banks or buy real estate properties to hide the money. The second phase is the camouflage which means the attempt to hide the source of the money via complicated bank transactions or transferring the money to other banks outside the country. The final stage is the integration. It means the attempt to give the illegal money a legal shape or concept.
Money laundering is a threaten phenomenon that we suffer from, which affects the economy of the state and allows the corruption to spread. That’s why it is vital to put severe laws to face and overcome such phenomenon.