The Laundering Of Capitals: Definitions, Stages, Causes That Favour Its Existence and Consequences
The problem of money laundering is a matter of concern to the States, which is why the measures that promote the prevention of money laundering operations in the financial system have increased. Among the main measures are the obligation of a registration and the essential communication of certain operations with cash, which allow, in certain cases, to detect and control the flows of money of illicit origin. From the multiple prevention programs, policies have been built that help detect cases of money laundering. Among the alternatives is the urgent need to "know the customer", that is why insists so much on the banks to select and identify their clients based on knowledge of their commercial morality, their economic activities; there is also the "knowledge of the financial market
- Concept of money laundering and definitions:
According to the Financial Crimes Prosecution Network of the United States Treasury Department "Money laundering involves the concealment of financial assets so that they can be used without detecting the illegal activity that produces them.
Through money laundering, crime transforms the economic income derived from criminal activities with legal funds.
With the objective of mitigating operational, legal and reputational risk associated with Money Laundering and Terrorist Financing, we have implemented an "Integral Risk Management System" establishing efficient and effective rules, policies and procedures, in order to reduce the risks related to our financial activity and avoiding that in the performance of any operation we are used by organized crime groups as an instrument to conceal the origin, purpose and destination of illicit capital or funds destined to the financing of terrorist groups or activities.
Dear customer: We invite you to join us in the fight against Money Laundering!
- When opening an account, provide the correct information and all required documentation requested by the responsible official, in compliance with our "Customer Knowledge Policy".
- Display your current identity document, when required.
- Inform the official about the origin and destination of your funds at the time you request them to perform certain transactions; according to the amounts established in the internal regulations, in compliance with the standards of extended due diligence.
- Update your data periodically informing us of the changes (address, phone numbers, and economic activity, among others).
- Do not allow third parties to use your Account to perform operations whose origin you do not know.
- Keep your identity document safeguarded so that third parties do not have the possibility of usurping your identity by opening or mobilizing bank accounts for illicit purposes.
- The following activities are considered money laundering:
- The conversion or transfer of goods, knowing that said assets come from a criminal activity or participation in a criminal activity, with the purpose of concealing or concealing the illicit origin of the goods or of helping people who are involved in circumventing the legal consequences of their actions.
- The concealment or concealment of the nature, origin, location, disposition, movement or real ownership of property or property rights, knowing that said assets come from a criminal activity or participation in a criminal activity.
- The acquisition, possession or use of property, knowingly, at the time of receipt thereof, that they come from a criminal activity or participation in a criminal activity.
- Participation in any of the activities mentioned in the previous letters, the association to commit this type of acts, the attempts to perpetrate them and the fact of helping, instigating or advising someone to perform them or facilitate their execution. There will be money laundering even when the behaviours described in the preceding letters are carried out by the person or persons who committed the criminal activity that generated the assets.
- For the purposes of this Law, assets derived from a criminal activity shall be understood as all types of assets whose acquisition or possession originates in an offense, whether tangible or intangible, tangible or intangible, as well as legal documents or instruments, whether tangible or intangible, movable or immovable. Irrespective of its form, including electronic or digital, that proves the ownership of said assets or a right over them, including the fee defrauded in the case of crimes against the Treasury.
- Money laundering will be considered even if the activities that generated the assets had been developed in the territory of another State ".
- Elements that favour money laundering.
There are many causes that favour the existence and continuity of laundering practices. The first one is found in the source of the goods that have to be laundered, this is the existence of illicit activities that are done in a hidden way and that are difficult to repress. But leaving aside these origins, other factors would be the following:
- Globalization, especially of the economic and financial system.
- Technologies and social networks: on the one hand, thanks to new technologies, it is increasingly easy to carry out operations at an international level, just by having a point of connection to the Internet. In addition to the existence of social networks, it greatly facilitates the contact of agents willing to participate to a greater or lesser extent, in these operations, all over the world.
- The late criminalization of money laundering.
- The close relationship between money laundering and corruption.
- Existence of tax havens and other offshore centres, with policies of non-exchange of information, and very high protection of banking and business secrecy.
- Lack of awareness on the part of certain professionals in the prevention of money laundering: private banking, consulting ... etc.
- Lack of international collaboration.
- Bank crisis and need for liquidity. Due to the crisis, the number of depositors in the banking entities has been very reduced, as well as the number of transactions carried out. There may be a significant lack of liquidity for certain entities. When a client appears with his capital to take an entity out of these situations of lack of liquidity, or collaborate in obtaining new benefits, the bank may be tempted to accept its money, regardless of its origin, of the identity of the bank. Impostor and even the destination of their transfers.
The currencies or virtual currencies constitute a heterogeneous set of innovative payment instruments that, by definition, lack a physical support to support them. These have grown exponentially as online games and social networks have become popular, offering what appears to be an alternative payment solution better adapted to the particular needs of the exchange of virtual goods or services. They aspire to occupy in cyberspace a role equivalent to the one currently played by cash in the real world. Despite its proliferation, the market's attention is focused on a few highly successful initiatives worldwide, among which the case of Bit coin stands out for its presence in the media.