Welcome to my first topical post “What is Money Laundering?” Well, money laundering, quite simply, is the process of making dirty money appear clean. The Financial Action Task Force, FATF for short, is the multinational body that sets the global tone for AML efforts. Formed in 1989, it is based in Paris.
Its working definition of ML:
(1) The conversion or transfer of property knowing it is derived from a criminal offense, for the purpose of concealing or disguising its illicit origin or of assisting any person who is involved in the commission of the crime to evade the legal consequences of his actions,
(2) The concealment or disguising of the true nature, source, location, disposition, movement, rights with respect to, or ownership of property knowing that it is derived from a criminal offense, and
(3) The acquisition, possession or use of property, knowing at the time of its receipt that it was derived from a criminal offense or from participation in a crime
As you see, in each part of the definition, the word “Knowing” is used. While that is a critical element, I will discuss in my next posting the concept of Willful Blindness – which generally will prevent someone from just saying, “I didn’t know” and getting away with it.
Until then, thank you for reading.