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Ways for Governments to Avoid Money laundering

By Gill Dane

Many nations have joined with the International Monetary Fund’s efforts to combat the network of people who practice money laundering. Many member countries are assisted by the IMF in right recognition of crooks and also apprehending them to avoid transfer of cash that go into a lot more criminal procedures just like arms-and-drug-dealing, all forms of terrorism and also corruption, among others. Money laundering is unacceptable as the money comes from illegal means and is used to support and finance crooks and possibly even terrorists. Crooks disguise their loot to prevent proper authorities from monitoring their own modus operandi and their hierarchies thru serial numbers found in money.

One of the ways that IMF member countries perform is to establish anti-money laundering commissions or intelligence units in banks, organizations and also other finance institutions that aid detect suspicious activities. Furthermore, individuals or firms that are found coping with questionable businesses and individuals are prohibited from transacting with banking institutions and in turn, banking institutions that are identified to work with crooks and also shady individuals are punished or risk being stripped of their permit to operate. An example in the news just lately is Standard Chartered Bank in New York City, that was apparently discovered to be channeling money to banned individuals and groups from Iran.

This criminal practice not only funds felony activities but it also brings about an imbalance in the money market supply, which could perhaps bring about monetary collapse for an economic system, if criminals were still left to operate without being apprehended. Yet another way to curb this practice is to strictly implement accounting, auditing and also tax payment for all types of firms, organizations and also enterprises. Accountants as well as auditors can report shady discrepancies to good authorities and stop this from taking place. Additionally, limiting the amount of money that individuals take abroad is also one more method to avoid it. Individuals who need to bring more must state where and what they’ll use the cash for.

Considering that there are also ways how money launderers could convert hot or dirty money into clean ones, huge transactions should be reported even for transactions involving electronic currency or points. This exercise is multi-factorial also it includes numerous criminal and also legal companies that behave as front enterprises to people who earn money from improper techniques. Also, the crackdown for the money launderers was improved because most terrorists are able to operate mainly because cash from legal companies offshore is channeled to them thru banks. Somehow, crooks find lots of methods to bend the laws, possibly by extortion and threat.

Money laundering is truly something that a lot of people needs to be careful enough to report to authorities. It’s even caused by the rise of terror activities caused by radicals, extremists and other individuals who aim to destabilize governments. A few nations don’t succeed because there is little political will to have this practice completely abolished. Whilst nations just like the US, Canada and Australia have been known to sanction and penalize reporting companies, financial institutions and institutions who violate anti-ML laws, most smaller countries can’t implement their own AML laws and this is why this practice is still very widespread in certain nations despite the international community’s perceived vigilance.

Gill Dane is a devoted legal blogger specializing in tax issues and the fight against t fraud. To read her tips and articles, please click here Mossack Fonseca fights against dirty Money

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Article Citation
MLA Style Citation:
Dane, Gill "Ways for Governments to Avoid Money laundering." Ways for Governments to Avoid Money laundering. 17 Oct. 2012. 4 Dec 2014 <>.

APA Style Citation:
Dane, G (2012, October 17). Ways for Governments to Avoid Money laundering. Retrieved December 4, 2014, from

Chicago Style Citation:
Dane, Gill "Ways for Governments to Avoid Money laundering"

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