Reversed Money Laundering In Modern Days
Money laundry is by far one of the worst headaches most states suffer from either by enacting laws to prevent it which can take a lot of time, money and resources or by altering local laws to adhere to globally recognized financial laws and protocols meant to stop such acts from taking place, a lot of countries do not have much experience in dealing with this issue, this brings up the question of what is money laundry, how can it be reversed “Reversed money laundry”, what effects does it have on the state it occurs in and the end-state where the money is put into action through attacks or illegal tax evasion, finally, where do governments and financial institutions fit into all of this.
Money laundry officially became a criminal offence punishable by the law in the U. S. back in 1986 after several states reported significant losses and illegal acts taking place which they had no control over such as drug money being put into legal business resulting in unfair competition in some cases and currency problems. Learning more about where legal money goes to after its pulled out of the legitimate financial system is a crucial issue to determine how it is being used or even stored, has defined reverse money laundering as the use of illegal means to conceal or cover or funnel legally earned money that gained in normal course of business that is later used to evade taxes or fund terrorism. Move of these cover-ups are done in small amounts so that it would not trigger alarms or raise red flags. Some gangs actually suggested putting $175, 000 in a washing machine to remove fingerprint and cocaine odor and residue giving the term credibility. However, these illegal activities have been somewhat put in the light after 9/11 took place in the United States and other major terrorist events occurring in various parts of the world.
The act of reverse money laundry is directly related to funding the black market in general and to be more specific, it has been referred to as a country’s shadow economy; the fact is that black markets undermine a country’s sovereignty and its ability to enforce law and order. The modern day official response to reversed money laundry is a twin track approach, it entails the factors of timing and the ability to deter into account in the form of preventive policies, those aimed at deterring before the act takes place and repressive policies resulting in severe penalty by taking away certain assets in some cases and the most frequent heard of, freezing assets. It doesn’t end there as prison sentence is also an option for countering such activities.
