FINANCE

ACTIVITY
 WHAT DO YOU
MEAN BY WORD

•HAWALA
MONEY LAUNDERING
 What is Money
Laundering?
• Money laundering is the
process, by which, large
amounts of illegally
obtained money is given
the facade of having a
legitimate source
 PROCESS OF MONEY
LAUNDERING
• PLACEMENT

• LAYERING

• INTEGRATION
 White-collar
laundering: Eddie Antar
• Placement: Antar made a series of
separate deposits to a bank in
Israel. On one trip, he made 12
deposits in a single day.
• Layering: Before U.S. or Israeli
authorities had a chance to notice
the suddenly huge balance in the
account, Antar had the Israeli bank
wire transfer everything to Panama,
where bank secrecy laws are in
effect. From that account, Antar
could make anonymous transfers to
various offshore accounts.
• Integration: Antar then slowly
wired the money from those
accounts to the legitimate Crazy
Eddie's Electronics bank account,
where the money got mixed in with
legitimate dollars and documented
as revenue
 SOME OTHER METHODS
• Black market

• Smurfing

• Overseas banks

• Shell companies

• Investing in legitimate businesses

Smurfing
Overseas Bank
 QUIZ
• According to international monetry
fund how much is laundered each
year?

• 60 million
• 600 million
• 60 billion
• 600 billion
 House of majority Tom Delay
stepped down in 2005 after being
laundering charges

• True

• False
 Which former World Leader was
convicted in 2003 of money
laundering involving swiss bank?

• Benazir Bhutto
• Boris Yeltison
• Bill Clinton
• Jacques Chirae
 Which of the following term is used
to describe the process of sending
money through multiple financial
institute to make it difficult to
track?
• Integration
• Placement
• Camouflages
• Layering
• In the US, Banks must report
deposits of $10000 or more. What is
the term for breaking up large sums
of money into smaller amount?

• Smuggling
• Shorting
• Shrinking
• Smurfing