What is money laundering?
Q: What is money laundering?
A: Money laundering is a process that criminals use to hide the money they make from illegal activities or political corruption, which is called "dirty money". The goal of money laundering is to make it look like the dirty money came from legal sources so banks can accept it without being suspicious.
Q: How do criminals launder money?
A: Criminals often use the money earned from illegal activities to buy things (like gold and silver, shares or casino chips, other legitimate business activities like food or liquor stores) and then selling those items to get the money back. This makes it hard for police to trace where the criminal got their funds.
Q: Are there laws in place to stop money laundering?
A: Yes, some countries have laws in place that help police find out when criminals try to do money laundering. Under these laws, businesses must report large payments and transactions as well as any suspicions of possible money laundering activity.
Q: Who created the Financial Action Task Force on Money Laundering?
A: In 1989, some countries set up a group of people from different Governments called the Financial Action Task Force on Money Laundering (FATF/GAFI). This organization helps tell countries about ways they can stop and prevent money laundering.
Q: Which countries are members of FATF/GAFI?
A: Countries that are members of FATF/GAFI include Argentina, Aruba, Australia, Austria, Bahrain, Belgium Brazil Canada China Curaçao Denmark European Commission Finland France Germany Greece Hong Kong Iceland India Ireland Italy Japan Kuwait Luxembourg Malaysia Mexico Netherlands New Zealand Norway Oman Portugal Qatar Republic of Korea Russian Federation Saint Maarten Saudi Arabia Singapore South Africa Spain Sweden Switzerland Turkey United Arab Emirates United Kingdom United States.
Q: What must businesses do under anti-money laundering laws?
A: Businesses must report large payments and transactions as well as any suspicions of possible money laundering activity when required by law. They may also need to keep records on paper or computer regarding all large payments made or received by them.
