Anti-Money Laundering
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This learning module discusses Money Laundering.
Money laundering is the act of cleaning the proceeds of illegal activities or ‘dirty’ money to legitimate funds. Criminals, both corporate and street-level, use this technique to disguise the source of their criminal earnings. To counteract this, many countries have laws against this and most financial institutions enforce anti-money laundering (AML) protocols to detect and prevent money laundering activities.
The practice of money laundering involves three distinct steps: placement, layering, and integration.
Stage 1- Placement: the proceeds of illegitimate activity are funnelled into the financial system using different techniques, such as making large deposits into a bank or engaging a middleman to facilitate the transfer.
Stage 2- Layering: involves concealing the source of the money by executing multiple transactions to hinder tracking.
Stage 3- Integration: is the moving of the money into the economy as legitimate finances that can be used for legal purposes. Money laundering is usually performed to hide the income from criminal activities like drug running, arms smuggling, and terrorism.
The United Nations Vienna 1988 Convention Article 3.1 describes Money Laundering as:
“the conversion or transfer of property, knowing that such property is derived from any offense(s), for the purpose of concealing or disguising the illicit origin of the property or of assisting any person who is involved in such offense(s) to evade the legal consequences of his actions”.
Keywords: Definition of money laundering, know your customer (KYC), goals, and legislation, history of AML
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Key Themes Activities by individuals and organisations paint an overall picture of a country and how its rated or ranked in money laundering. |
Target audience – Who should do this course?
All employees including business owners, contractors, all leaders, and managers in an organisation or company in the following sectors:
- Banks, financial institutions
- Money service businesses, bureau de change, foreign exchange
- Employees who are involved in activities that are relevant to AML compliance, such as customer service, compliance, and risk management.
- Individuals who work in related fields, such as law enforcement, regulatory compliance, or financial crimes investigation.
- Individuals who hold certain professional certifications or licenses, such as certified public accountants or attorneys
- Anyone who has a role to play in preventing, detecting, and reporting money laundering activities.
- Business Owners Individuals and organizations that are subject to Anti-Money Laundering (AML) laws and regulations, such as financial institutions, money service businesses, casinos, and other businesses that are at high risk for money laundering.
- The public at large – citizens and general members of the public
Changes are inevitable and there are instances when updates are essential. When laws and regulations are changed or introduced, we will strive to update the content and issue an announcement here
