The Process and Principles of Money Laundering Financial Essay
In other words, the source of illegally obtained money is obscured through a series of transfers and deals, so that those same funds can eventually appear as legitimate income. The term money laundering is said to come from the mafia in the 1970s. Gangsters at the time, such as Al Capone, profited from illegal activities. Challenges in preventing money laundering. Increasing use of digital currencies: The rise of cryptocurrency allows money launderers to hide their illegal funds. Estimates suggest that criminals have used the hyper-connected cryptocurrency ecosystem to launder more than 2. dirty Bitcoin. Money laundering is the process of concealing the illegal origin of the financial proceeds of crime. Following intense policy attention to the illicit narcotics trade in the United States and Europe, money laundering developed in recent years into a relevant global problem, culminating in the creation of a specialized organization, the Financial. ties to financial assets. By using non-laundered, 'dirty' money, authorities could trace suspicious large purchases back to their source. This could reveal the crimes that originally earned the money and lead to prosecution.