2.3. Definition of money laundering in the narrow sense
These categories must be incorporated into domestic law (by Palermo convention, Art. 6).The Palermo convention definition is an expansion of Vienna Convention definition which scope is limited to drug-trafficking offences.
(a) (i)
Concealing
Conversion of
|
|
|
|
|
|
|
|
|
|
The illicit origin |
|
|
|
|
Property |
|
|
Purpose |
|||||
|
|
|
|
|
|
|
of property |
||||
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Helping any person who is in- |
|
|
|
Disguising |
|
|||
|
|||||||||||
|
|
|
volved in the commission of the |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||||
|
|
|
predicate offence to evade the |
|
|
|
|
|
|||
|
|
|
legal consequences of his action |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
The conversion or transfer of property, knowing that such property is the proceeds of crime, for the purpose of concealing or disguising the illicit origin of the property or of helping any person who is involved in the commission of the predicate offence to evade the legal consequences of his or her action.
(a) (ii) |
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Knowing that |
|||||
Concealment of |
|
|
|
||||||||||
|
|
Nature |
|
|
|||||||||
|
|
|
|
such property is |
|||||||||
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
proceeds of crime |
|||||
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
Source |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Location |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
True |
|
Disposition |
|
With respect to |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Movement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ownership of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disguise of |
|
|
|
Rights |
|
|
|
|
Property |
||||
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The concealment or disguise of the true nature, source, location, disposition, movement or ownership of or rights with respect to property, knowing that such property is the proceeds of crime.
21
2.4. Definition of money laundering in the broad sense
These categories are not mandatory and subject to each country’s “constitutional principles and basic concepts of its legal system” (by Palermo convention, Art. 6).
(b) (i) |
|
|
|||||
Knowing that |
|||||||
|
|
|
|
|
|||
|
|
At the time of receipt |
|
|
|||
|
|
|
|
such property is |
|||
Acquisition of |
|
||||||
|
|
|
|
proceeds of crime |
|||
|
|
|
|
||||
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Possession of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Use of |
|
|
Property |
|
|
||
|
|
|
|
The acquisition, possession or use of property, knowing, at the time of receipt, that such property is the proceeds of crime.
(b) (ii)
Participation in |
|
Association with |
|
Conspiracy to commit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The commission of |
|
|
|
|
Attempts to commit |
Aiding |
||||||
|
|
money laundering |
|
|
|||
|
|
|
|
||||
|
|
|
|
|
|
||
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Abetting |
|
Facilitating |
|
Counseling |
|
|
|
|
|
|
|
Participation in, association with or conspiracy to commit, attempts to commit and aiding, abetting, facilitating and counseling the commission of any of the offences established in accordance with this article (Art. 6).
22
2.5. Anti-money laundering measures of combating organized crime
Organized criminal group
Looks like income from a legitimate business
Superiors
Various hierarchy levels
Executives
Money laundering
Organizing, directing, abetting, etc. the commission of a predicate offence
Commission of a predicate offence for a purpose of a financial benefit
Disbursement of a considerable sum of money per person
Proceeds from crime
Possession and personal use of insignificant sum of illgotten money
Money laundering can be the only conviction
Superiors
It is difficult to get a conviction on these offences
What is the need of prosecuting the money launderer?
Executives
It is easy to get a conviction on these offences
A modest remuneration of an executive
Involves ML in the narrow and broad sense
Organizing, directing, abetting, etc. the commission of a predicate offence
ML in the broad sense
Commission of a predicate offence for a purpose of a financial benefit
23
2.6. The process of money laundering and modeling of its phases
Placement
Layering
Integration
•Illegally derived funds are being placed into the financial system
•Large amounts of cash are broken into smaller ammounts and deposited over time in financial institutions
•The exchange of one currency into another and conversion of smaller notes may occur
•Illegal funds may be converted into checks and commingled with legitimate funds, securities, or insurance contracts may be purchased
•Funds moved to other institutions to obscure origin
•Financial instruments are being purchased and sold, transferred from one institution to another
•The transfer is facilitated by a negotiable instrument or by electronic means to various jurisdictions
•Funds can be disguised as a payment for a contract, especially one with a shell company
•Funds used to acquire assets in the legitimate economy
•A launderer purchases real estate, securities, luxury goods, establishes or acquires legitimate companies
24