• What is Money Laundering?• How it is generated?• Stages of money laundering• Typologies / Techniques• Structuring & Smurfing• Cuckoo smurfing

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PRESENTATION OUTLINE

Money Laundering

• laundry = cleaning

• money laundering -“cleaning on money”

• Process - illegal funds & assets - converted into - funds & assets

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Illegal / Dirty Money

Legal / white Money

Conversion

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Global Money Laundering

• World wide ↑ USD 3 Trillion / year = ↑ economic size of United Kingdom

• Kenya – regional hub for “ILL – GOTTEN -GAIN” – USD 100 mil

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How it is generated……???

Criminal Activities

Kidnapping

Extortion

Bribery & Corruption

Gambling, Robbery, Cheating

Counterfeiting & ForgeryTerrorist Act

Prostitution

Smuggling(arms, people,

goods)

Drug Trafficking

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Stages of money launderingStages of money laundering

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HOW MONEY LAUNDERING WORKS:

Placement Techniques

• Smurfing and Structuring

• Forex money / alternate remittance

• Asset conversion (property/bogus companies)

• Investments banking & Securities

• Lawyers, accountants & intermediaries

• trading / insurance purchase / personal investment

• Misuse of Non-Profit Organisations

• Gambing

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• Smurfing method Structuring• Illegal source cash deposit specialist (smurf) (deposit) n X (account)

n

• Suspicion is often avoided

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Smurfing and Structuring

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Cuckoo Smurfing

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• Example: “Sivaji Movie” – Money transfer