وحدة مكافحة غسل الأموال وتمويل الإرهاب
جمهورية مصر العربية
Money laundering is the process through which the proceeds of crime enter into the economy in the form of clean funds.
The Money laundering happens through three stages; placement, layering and integration.
Placement: In placement the criminal proceeds are injected into the financial system of a particular country.
Layering: In layering, multiple transactions are conducted on the placed proceeds in order to disguise their origin and make difficult for the concerned authorities to trace them back to it.
Integration: In integration, the criminal proceeds, which have been layered, are pumped in the economic circle of a particular country.
Although some may argue that even if the money is dirty it can help push the cycle of development in countries forward, it is quite evident that money laundering have many adverse consequences. These consequences can be categorized into economic, social and political consequences. Economic consequences of money laundering: Money laundering often results in the following: Diminishing authorities' ability to carry out economic policies effectively. Undermining the stability of the foreign exchange market, due to the major fluctuations in the movement and the flow of funds. Creating big discrepancies in the distribution of resources and wealth. Weakening economic growth as a result of the concentration of resources in investments in worthless investments. Creating inflationary pressure on the national economy of countries as a result of the existence of a purchase power emanating from unreal economic activity. On the political level, money laundering often leads to: Spreading political and administrative corruption and influence exploitation. Blemishing countries reputations with international lending institutions, especially for developing countries. Creating the possibility of money launderers gaining access to important national institutions such as the People's Assembly or the Prosecution Offices. This often results in money launderers gaining immunity and their participation in setting the legislations of countries, which spreads chaos and threaten political stability. On the social level, money laundering leads to: Creating unemployment as a result of the rarity of job opportunities. Spreading corruption.
In 1988, the United Nations (UN) issued the UN Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances which was the first international convention to tackle the problem of money laundering.
In 1988, the Basel Committee issued a statement on Banking Regulations and Supervisory Practices.
Financial Action Task Force on Money Laundering (FATF)
Established in 1989 at the G-7 summit in Paris.
Council of Europe
In 1990, the Council of Europe Established the Council of Europe Convention on Money Laundering, Search, Seizure and Confiscation of the Proceeds from Crime.
Although it is not feasible to determine the size of money laundered annually, but the World Bank estimated that money laundered annually is about 2.5% of global GDP size.
This website was designed by the Unit’s Research and Strategic Analysis Dept.
Arab Republic of Egypt
Egyptian Money Laundering and Terrorist Financing Combating Unit
|قواعد التعرف على الهوية|
|وحدة مكافحة غسل الأموال|