Money Market Violations and the Money-Laundering Events Assignment - 1

Money Market Violations and the Money-Laundering Events - subsidization ExampleAccording to a survey made by the International Monetary Fund in the year 1996, laundered currency occupied 2 to 5 percent of the world economy (Molander et al, 1998).FATF which stands for Financial process Task Force on Money clean is an intergovernmental body which has been formed to fight money make clean (Witherell, 2002). It believes that getting a reliable estimate on the magnitude of money laundered is quite difficult and so it generally doesnt publish any(prenominal) numbers regarding the money laundered amount. The same situation is prevalent among the academician commentators who are unable to give any estimate on money laundered amount. Even though the contain measurement of estimating the money laundered is difficult, there are still millions and millions of money laundered every year (International Monetary Fund, 2005). This has been a great concern for creating financial policy by th e government. This has resulted in lots of international organizations and government to beget efforts to counter money laundering, to deter money launderers. Prevention and detection of illegal transactions have been a primary priority of financial institutions and this is also emphasized by the government as well saves their companys reputation.The anti-money laundering legislation according to the Proceeds of Crime Act 2002, would demand an explanation by the authorities for any illegal activity by the customers of the regulated sector (Ewerhart et al, 2007). The regulated sector would comprise of investment, money transmission, and banking.UK has tending(p) wide importance in money laundering (FATF, 2004). Any involvement with any assets involved in the crime is treated to be money laundering offense. Any possession of the ones own assets involved in the case is also considered to be money laundering act of UK. The traditional meaning of the word money laundering would be a pr ocess which involves the source of the proceeds to be hidden or conceal and they are made to be appearing legal.