NATURE AND CAUSES OF GLOBAL MONEY LAUNDERING

PRESENTED BY:

Kiran Aftab (Roll # 01) Afifa Naseer (Roll # 68) MBA-2004 4th Semester

INSTITUTE OF BUSINESS ADMINISTRATION
UNIVERSITY OF THE PUNJAB LAHORE

TABLE OF CONTENTS
Introduction 6
History 9
Money laundering and Globalization 13
Nature of Money laundering
The techniques he describes-converting money into readily movable assets, moving cash outside the jurisdiction to invest it in a business, and trading at inflated prices to expatriate funds are used today by sophisticated money launderers.
From this perspective a primitive form of money laundering and indeed tax evasion was established, in that money was hidden, moved and invested despite the fact that someone else had a claim. Since then the principles of money laundering have not changed, but the mechanisms have.

AL CAPONE'S 1931 CONVICTION FOR TAX EVASION LEADS TO THE MODERN PRACTICE OF MONEY LAUNDERING

The term "money laundering" is said to have evolved from the Prohibition era in the United States. Many methods were devised to disguise the origins of money generated by the sale of then-illegal alcoholic beverages. Following Al Capone's 1931 conviction for tax evasion, mobster Meyer Lansky transferred funds from New Orleans slot machines to accounts overseas. After the 1934 Swiss Banking Act which created the principle of bank secrecy, Meyer Lansky bought a Swiss bank where he would transfer his illegal funds through a complex system of shell companies, holding companies and offshore accounts.
IN ORDER TO FACILITATE TRADE
However it is also known that money