What is the Money laundering Integration definition
What is the Integration term in the Money laundering subject ?
Integration - This is the
movement of previously laundered money into the economy mainly through
the banking system and thus such monies appear to be normal business
earnings. This is dissimilar to layering, for in the integration process
detection and identification of laundered funds is provided through
informants. The known methods used are:
- Property Dealing - The
sale of property to integrate laundered money back into the economy is
a common practice amongst criminals. For instance, many criminal
groups use shell companies to buy property; hence proceeds from the
sale would be considered legitimate.
- Front Companies and False Loans
- Front companies that are incorporated in countries with corporate
secrecy laws, in which criminals lend themselves their own laundered
proceeds in an apparently legitimate transaction.
- Foreign Bank Complicity
- Money laundering using known foreign banks represents a higher
order of sophistication and presents a very difficult target for law
enforcement. The willing assistance of the foreign banks is frequently
protected against law enforcement scrutiny. This is not only through
criminals, but also by banking laws and regulations of other sovereign
countries.
- False Import/Export Invoices
- The use of false invoices by import/export companies has proven to
be a very effective way of integrating illicit proceeds back into the
economy. This involves the overvaluation of entry documents to justify
the funds later deposited in domestic banks and/or the value of funds
received from exports.
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