Money Laundering and Terrorist Financing Activities ― A Primer on Avoidance Management for Money Managers

Money laundering may occur in every country. The significant factor is to diagnose the illegal money laundering activity and apply regulations to mitigate MLAs. To meet this objective, managers of financial institutions need to train their employees about anti-money laundering processes and how to diagnose money laundering. Anti-money laundering activities can also affect the financial systems of a country. “Money laundering destabilizes the foundation of a nation's financial system by reducing tax revenues and impeding fair competition by ultimately disrupting economic development” (World Compliance, 2008). Money laundering activities can create a big gap between income classes. Money laundering can also decrease banks' or financial institutions' credibility. “In practice, criminals are trying to disguise the origins of money obtained through illegal activities so that it looks like it was obtained from legal sources” (Layton, 2005). The purpose of this book is to introduce the reader to mechanisms useful for detection and avoidance of money laundering and terrorist financing activities (MLAs) and suggest improvements to existing MLAs where appropriate. The book may be of special interest to financial managers in the private and public sector. It also may be a useful guide for those involved in international financial transaction in the finance industry.