Commission on Narcotic Drugs
Topic: A
Countering Money-Laundering and
Promoting Judicial Cooperation to
Enhance International Cooperation
CND Topic A
Submitted by: France
Topic A: Countering Money-Laundering & Promoting Judicial Cooperation to Enhance
International Cooperation
The issue of money laundering is a very large problem there has been between 590
billion and 1.5 trillion US dollars laundered, using 1996 statistics, so imagine the problem
today. The definition of laundering is as follows: Laundering: Verb; to put money you have
gotten by doing something illegal, in a bank account to hide it from where it really came
from. That’s exactly it. One of France’s problems is money laundering through vineyard
sales. Chinese buyers have been accused of this problem. The reason they accusing the
Chinese of this issue is because they believe that the Chinese are reselling France’s
vineyard products to other Chinese. The time span between buying and selling has been
shortening. Li Dongrong says that the money laundering has risen to “a strategic level”.
Chinese authorities are very busy reviewing massive outflows from the country.
Solutions have been made to try and solve this problem. One of those solutions are
the SAS, an electronic banking control. France is offering training in SAS. This organization
can scan over 2 billion transactions. Once suspicious behavior is identified, a seamless
workflow increases the effectiveness and efficiency of investigations. The increased
efficiency can be up to 95%. The SAS also helps to better understand one’s overall
exposure. Someone would also be able to scan 100% of your transactions.
The United Nations Convention Against Corruption (UNCAC) and Prevention of
Money Laundering scope is wide and criminalizes activities from corruption to fraud.
According to Article 23 of the UNCAC the offence of money laundering of proceeds would
be committed, provided the intentionality and knowledge requirements are met. They are
going to have an impact on the issue because their scope has many outlooks and
procedures.
So in conclusion, France may give too much free range, and should be stricter on
whom they sell products to. The SAS program will most definitely help the cause. The
online website will help scan all bank deposits and withdraws. The UNCAC will definitely do
something for it. On other terms France should use these organizations to stop the vineyard
laundering. France should use the SAS program because that will scan all of the sales
made to other countries. In order to provide global financial security we urge these steps be
put in place.
CND Topic A
Works Cited
C""THE UN ANTI-CORRUPTION CONVENTION AND MONEY LAUNDERING."THE
UN ANTI-CORRUPTION CONVENTION AND MONEY LAUNDERING(n.d.): n. pag. Web.
11 Dec. 2014.
<http://idec.gr/iier/new/CORRUPTION%20CONFERENCE/The%20UN%20Anticorruption%20convention%20and%20money%20laundering-INDIRA%20CARR.pdf
EMCDDA." June 25, 2014. Accessed November 23, 2014.
http://www.emcdda.europa.eu/publications/country-overviews/fr#inf.
FATF. "FATF." July 1, 1999. Accessed November 20, 2014.
http://www1.worldbank.org/finance/assets/images/pb9906_en.pdf.
Master, Cellar. "French Gov Agency Warns of Money Laundering in Vineyard Sales
to Foreigners." Ask Magnus. August 7, 2013. Accessed December 15, 2014. http://lecognac.com/magnus/france-agency-warns-money-laundering-vineyard-sales-foreigners/
SAS Institute Inc. "SAS." Accessed December 3, 2014.
http://www.sas.com/en_us/industry/banking/anti-money-laundering.html.
CND Topic A
Germany
Position Paper
Money laundering is the "concealment of the origins of illegally obtained money"
(oxforddictionaries.com). In simpler words, as defined by Cornell University Law Institute, it is a
"financial transaction scheme that aims to conceal the identity, source, and destination of illegally
obtained money". Money laundering usually occurs in shell companies which are companies set up for
no business purpose other than processing these transactions. These shell businesses commonly have
no major operations or large assets. The crime is easiest to commit with cash obtained from illicit
sources such as drug sales, human trafficking and cash bribes, or other forms of illegal income. The
person who is trying to launder money, or the launderer, hooks up with a shell company and gives the
money to them. The shell company must then create fake invoices, receipts and other false proof to
show where this mass of money came from, providing it legitimacy. (law.cornell.edu)
Germany was told by financial associations and by leaders within its own country that it needed
to do something about money laundering, as its laws were easy to bypass. The Financial Action Task
Force (FATF) actually gave Germany a deadline to change their laws on the topic. In early 2014, the
financial minister of Germany had some things to say about the laws on money laundering in Germany.
"If Germany doesn't take any steps into this direction until June 2014, it will be included into the
enhanced follow up procedure or be part of the listing procedure that's applied to high-risk countries."
Wolfgang Schäuble wrote in a letter. (wsj.com)
Germany has made efforts to prevent money laundering. It's current laws on it include that all
retailers are obligated to have record keeping that is very organized and informational. German
businesses must also identify transactions greater than €15000. If the transaction is not with a known
client, and they must identify each party in the transaction. If a third party is involved, the party must be
transparent and identified. (antifraudnetwork.com)
Germany has many ways it could further prevent and stop money laundering from occurring.
Previously, the problem was that some of Germany's states hadn't appointed legal authority to enforce
existing laws. Requiring all states to appoint and maintain these authorities would be the first step to
increase compliance with European Union money laundering laws. (europa.eu) The legislature could also
pass stricter laws. The laws need to include that small businesses taking in a very high amount of cash
should be obligated to maintain detailed records of their money sources. Often, money laundering is
done with small amounts of cash transacted at a high frequency. In addition to the €15000 law, there
CND Topic A
needs to be a law governing both frequency and cash value of transactions. The transaction
identification limit should be lowered from €15000 to around €5000. If Germany enforces and follows
through with all of their laws, their system should completely prevent money laundering.
(antifraudnetwork.com)
Works Cited
"Internal Market: Commission acts to enforce anti-money laundering rules in Germany"
europa.eu. European Commision. 2011. Web. 15 Dec 2014.
"Money Laundering". oxforddictionaries.com. N.d. N.p. 8 Dec. 2014
"Money Laundering: An Overview". law.cornell.edu. N.d. Legal Information Institute. 8
Dec.
2014
"OECD Criticizes Germany on Money Laundering".wsj.com. 2014. Wall Street Journal.
8 Dec.
2014.
"One Year On: The New German Anti-Money Laundering Law". antifraudnetwork.com.
2012.
The Anti-Fraud Network. 8 Dec. 2014.
Submitted by:
Republic of Guatemala
Money-Laundering is a serious crime that has become more common all over the world
over many years. It is the process of which "dirty money" is laundered through a bank or
another source to make it look as though it is legitimate. A single scheme usually
involves laundering the money through multiple countries to make it impossible to track
its origin. Just recently, officials started to investigate banks for any evidence. According
to the Wall Street Journal,"Amen Bank, which was 40%-owned by Banco Espírito Santo
and operated as part of the Espírito Santo group, became a rare gateway for moving
money in and out of Lybia, Banco Espírito Santo said at the time." In 2009, about 1.6
CND Topic A
trillion dollars were made by criminal proceedings having to die with money. Long term
consequences of money-laundering include drastic changes in money demand,
rupturing a bank's soundness and contamination of legal financial transactions. Moneylaundering is the number one organized criminal activity to occur without being caught,
and that should change. (FATF)
Guatemala is currently in a shift of legislation in intention of countering moneylaundering. The authorities there recently arrested 21 people that appeared to be
participating in a scheme. The USA was the lead in the national money-laundering rate,
however, since the recent outbreak of financial crime, Guatemala is currently taking first
place. On April 1st, official rules will take place in Guatemala against money-laundering.
Guatemala is also posing requirements in Banks for deposit making, hoping that these
implements prevent this crime from continuing at this rate. Jonathan Mankos states,"
Congress (in Guatemala) is analyzing a proposed bill that would provide better tools to
Tax Administration Superintendency to access and verify, without restriction, the real
income of bank account holders." (Boyle Litigation)
Therefore, The United Nations should make an effort to install higher security systems
and methods in banks and businesses to prevent money from being laundered through
them. Guatemala and other Central American countries should collaborate to sustain
their nation's laws or rules in the financing field. The United Nations should also refer to
their statements on drug trafficking and act on the relation ship between that and
money-laundering. With the help of other nations and The UN, we can secure our
financials all around the world and stop the crime that is putting it in danger.
CND Topic A
Bibliography
"Money-Laundering",faft-ga,2014.
12.18.14.<http://www.fatf-gafi.org/pages/faq/moneylaundering/>.
Patrick,Margot,Kowsmann,Patricia,Enrich,David,"Espírito Santo Faces Money
Laundering Investigations",Dows Jones and Company,2014
12.18.14.<http://www.wsj.com/articles/espirito-santo-faces-money-launderinginvestigations-1417432648>.
"Money Laundering In Guatemala",Boyle Litigation, 2014
12.18.14.<http://www.boylelitigation.com/money-laundering-guatemala/>.
Submitted by: Islamic Republic of Iran
Hello, my name is Patrick Dooner and I am the representative of the Iran money laundering protection
topic. I know we don't have the best background when it comes to money laundering on May 2012 Iran
was accused of money laundering with turkey China Dubai Because of this problem some of you might
think that Iran shouldn't speak on this issue. But I guess the best way sum up the problem of money
CND Topic A
laundering is with a quote by turkey's economy minister, " If those cast aspersions on the gold trade
are searching for immorality they should take a look in the mirror." The focus of this committee should
be on solving the problem of money laundering and not accusing other countries with this problem lets
start with action . But were working to fix that by working a little with the F.A.T.F to try to restore
peace. unfortunately its like shoveling snow in a blizzard once one crime is stopped there is ten more
we don't even know about. so are you willing to help us fight money laundering?
We obviously don't want this reputation as being the go to place for money laundering. We worked
on bulking up are capabilities to shut down the money laundering networks. This is difficult because
some of the private banks hide money laundering and make it look like drug dealers are successful
business men. That's why we could really use a more advanced money laundering detection system! So
we could see suspicions and stop this crime why wouldn't anyone want to help stop a crime. And for
those of you who continue to overlook money laundering as a minor problem we will never get anything
done because it's not going anywhere unless you make it! Let me ask you this if you had the power to
stop a crime why wouldn't you?
I think the best way to reduce this crime would to look into more advanced money laundering
detection system so we can try to stop it before it starts. And I know that we are defiantly not the only
country with this problem some of the other Islamic countries have this problem too and even other
countries like Kenya Turkey Israel and the Philippines. But we're a little low on the dough so this
operation might require funding. I think this is affecting Iran because it's not good to have money
launderers on the streets because whatever there selling is probably dangerous! And it changes peoples
perspective on Iran as a country. To make this work we would need funding and a better police force to
enforce these laws. And some support from other countries that have encountered this problem and
solved it they would be useful for advice in how to solve it. As a theocracy, we want this to stop money
CND Topic A
laundering and we are against it. Thank you.
Resources:
http://en.m.wikipedia.org/wiki/Central_Bank_of_the_Islamic_Republic_of_Iran, Central Bank of the
Islamic Republic of Iran, various authors, December 16, 2014
www.un.org ,United Nations Office on Drugs and Crime
https://www.google.com/#safe=active&q=world+factbook+iran , World fact book- Iran, CIA, June 22,
2014
http://www.bloomberg.com/news/2013-06-12/u-s-money-laundering-fines-seen-rising-in-2013-withiran-focus.html ,Islamic Republic of Iran, Public Statement - 24 October 2014
http://www.bloomberg.com/news/2013-06-12/u-s-money-laundering-fines-seen-rising-in-2013-withiran-focus.html , U.S. Money Laundering Fines Seen Rising in 2013 With Iran Focus, Sanat Vallikappen
Jun 12, 2013
Submitted by: Jamaica
Jamaica and many other countries are having issues with the international trade of illicit drugs
and laundering of the profits. Like other Caribbean nations, Jamaica is at an increased risk of these
complications because of its isolated geography. It’s very difficult to catch these criminals(though there
are heavy consequences for these serious offences). Monitoring these crimes is very difficult because
they typically use everyday institutions, or businesses to disguise their illegal actions. Jamaica like other
Caribbean countries is at a higher risk for money laundering due to the lack of detection of these
launderers. One reason they are at a higher risk is their lack of resources due to budgetary restraints,
because the government chooses to invest money in areas that present immediate problems or will aid
social well-being to the population. The limited amount of manpower or police force also adds to the
amount of laundering in Caribbean countries because of the division between more serious crimes and
CND Topic A
money laundering. The Caribbean is also a convenient stop for launderers due to its location between
South America and Columbia, making it an ideal spot to transport drugs. There is also a great number
of banks (550) in the Caribbean and only 17 are subjected to Anti-Money Laundering Laws which also
makes it attractive to launderers. All of these things add up making the Caribbean, or Jamaica a great
place for launderers,which is especially concerning l due to the fact they can’t catch these illicit
launderers.
Jamaica has taken many actions from the Financial Action Task Force(FATF) to fight against or
terminate money-laundering. Money launderers have three central steps that they follow. The
placement stage is the removal of bulk cash from illegal activity, and even prior to the placement stage
there is a exchange phase. Another new trend of launderers is using prepaid money cards because of
the anonymity and not needing direct contact with bank personnel. The layering stage is the separating
of the illicit proceeds, creating complex layers of financial transactions to disguise audit trail and provide
anonymity. The final step, integration is money returns to the legal monetary system long enough for a
short term investment. One way to help eliminate these steps in money-laundering is to get rid of the
use of these prepaid cards and/or track their use. Having more banks subjected to Anti-Money
Laundering Laws in the Caribbean would make launderers less attracted to these locations, there for
giving them less “safe” undetectable options.
The UNODC(United Nations Office on Drugs and Crime) established the (GPML) Global
Programme against Money-Laundering in 1997, which Jamaica and other Caribbean countries have a
mentor covering for the area. The GPML mandate has been strengthening by broadening its horizon to
fight against all serious crimes, instead of just drug-related offences. some of these include financial
suppression of terrorism, transnational organized crime , and overall corruption. The main objective of
this entire program is enhancing the monitoring of serious "CND Background Guide." 2014. MS.
Cleveland. CCWA. Web. 14 Dec. 2014. <www.ccwa.org/programs/model-united-nations/committeesand-topics/>.
crime, launching measures against money laundering and the financing of terrorism. Specialized
software is a possible solution for money laundering. So that is a company suspicious of a business
relationship they can monitor transactions. And if there are warning signals of illicit transactions one
can hire prevention bodies. If these and other measures were taken by Jamaica and other countries
they would have better financing and economies. If one Caribbean country, like Jamaica would
participate in these actions it would decrease the amount of launderers and enhance this issue
internationally, because these few steps can help enhance the cooperation of many countries.
Works Cited
CND Topic A
"CND Background Guide." 2014. MS. Cleveland. CCWA. Web. 14 Dec. 2014.
<www.ccwa.org/programs/model-united-nations/committees-and-topics/>.
"Financial Action Task Force (FATF)." IBA Anti-Money Laundering Forum -. FATF, n.d. Web. 11 Dec. 2014.
<http://www.anti-moneylaundering.org/FATF.aspx>.
Gray-Farquharso, Naderah. The Observed Effects of Money Laundering for Jamaica. Rep. N.p.: n.p., n.d.
Web. 10 Dec. 2014. <http://www.ccmf-uwi.org/files/publications/conference/940.pdf>.
"Jamaica." CIA World FactBook. CIA, n.d. Web. 11 Nov. 2014. <
https://www.cia.gov/library/publications/the-world-factbook/fields/2086.html>.
"Jamaica Takes Steps to Tighten Anti-money Laundering Measures." N.p., 5 Dec. 2013. Web. 8 Dec.
2014. <http://www.caribbean360.com/business/jamaica-takes-steps-to-tighten-anti-money-launderingmeasures>.
Submitted by: Kenya
Committee: CND
School: Monticello Middle School
Delegate: Leela Rajeswaran
Topic A: Countering Money Laundering
Money laundering has grown more intense, not just in Kenya but also worldwide. Money
laundering is a process of engaging in financial transaction that conceal or disguise the identity, source,
CND Topic A
location and destination of the money. Kenya has become a financial hub for trade throughout East
Africa. In Kenya, money laundering is a big problem because it has caused extortion, insider trading,
illegal gambling and more importantly drug trafficking. Our government established a law to defy against
money laundering. The Anti-Money Laundering (AML) law seeks to criminalize money laundering and
asks financial institutes to report suspect transactions. The law’s enactment is being honored as a positive
move by the banking and financial services sector that see it as a key step in the country’s fight against
money laundering.
Kenya's proximity to Somalia makes it an easy target location for the laundering of illegal
proceeds and a financial hub for al-Shabaab (a UN and US designated organization). In May of 2008, the
crime still went on but then the anti-money laundering was introduced. Kenya has in the past established a
law, The Proceeds Of Crime and Anti-Money Laundering Bill, which received assents on the 31st of
December 2009. This was known as “the Act”. The Attorney General requested assistance from the
World Bank in setting up the agency. The establishment of Kenya’s Anti-Money Laundering (AML)
Law means that they are now part of the EAC members who also include Tanzania, Rwanda, and
Burundi, who have already taken steps in their legislation.
The Penalties for Money Laundering include:

Fourteen years jail term and/or a maximum fine of k.shs.5, 000,000 (approx. US$70,000).

Money laundering reduces tax revenue.

Money laundering may lead to the transfer of economic power from the market.

There is also criminal forfeiture of the proceeds of crime, civil forfeiture of property.
The new and existing laws should be harmonized to ensure coordinated, effective
implementation of the new law. Both the a Proceeds of Crime and anti-Money laundering and preexisting Anti-Corruption and Economic Crimes Act deal with proceeds of crime including corruption,
CND Topic A
“reads the commentary”. The AML Law seeks to establish a Financial Reporting Centre (FRC) and
Assets Recovery Agency, to criminalize money laundering and further require reporting institutions to
take measures to help combat money launder.
Work Cited
"Kenya." IBA Anti-Money Laundering Forum -. N.p., n.d. Web.
"News From Africa - About Us." News From Africa. N.p., n.d.
"Commercial Law International." Commercial Law International RSS. N.p., n.d. Web.
Kenya: Money Laundering Fraud Centre to Be Formed." Kenya: Money Laundering Fraud Centre to Be
Formed. N.p., n.d.
Kosovo
According to the Oxford Dictionary, money laundering refers to "the concealment of the origins of
illegally obtained money, typically by means of transfers involving foreign banks or legitimate
businesses". Money laundering basically occurs through three different phases: placement, layering, and
integration. Placement refers to placing "dirty" money into a legitimate financial institution. This stage is
the prime time to detect this crime, as the process involves large amounts of cash that could be viewed as
suspicious. Layering involves transferring money through various financial transactions. Examples of this
include bank to bank transfers, often to foreign banks, and switching both the money and accounts in
name, country, value, and currency. The goal of this phase is to make the money difficult to trace.
Integration is when money re-enters the economic system in a legitimate-looking form. This process may
CND Topic A
involve selling the property acquired during the layering stage. Launderers are especially difficult to catch
in this phase, and can now use the money in its seemingly legitimate form.
Kosovo has already taken steps to prevent, detect, and prosecute money laundering. In 2004, the
UNMIK (United Nations Interim Administration Mission in Kosovo) created Regulation 2004/2 "On the
Deterrence of Money Laundering and Related Offenses". This regulation defines money laundering, its
penalties, and the requirements of reporting it as a crime. Kosovo's government has also created similar
regulations addressing organized crime and other related offenses. Multiple agencies have been created in
order to detect and prosecute money laundering, including but not limited to the Financial Intelligence
Center, the Ministry of Economy and Finance, and the Financial Investigation Unit. President of Kosovo,
Ms. Atifete Jahjaga, delivered a speech on money laundering and organized crime in October 2011. On
taking steps to prevent such offenses, she stated, "In particular, we need clear law articles that demand the
declaration of assets and their origin, in addition to the law on confiscation of assets suspected to be fruits
of organized crime and other illegal enriching". In emphasizing the dangers of organized crime, President
Jahjaga proclaimed, "modern organized crime, along with terrorism, are among the greatest threats that
humankind face".
Money laundering is a serious criminal offense that, with proper measures, can be prevented and
punished. The main detriment in preventing money laundering is the lack of awareness. Both possible
reporting institutions and the general public remain uninformed about where and when to report
suspicious financial transactions. Reporting institutions include banks, lawyers, and business owners.
Such institutions, as well as the citizens, should be educated in what money laundering is, what signs
indicate this offense, and where to report suspicious activity. Prosecutors should be specialized to handle
cases of money laundering. Furthermore, strong institutions should be created (in addition to Kosovo's
current ones) for money laundering to be reported to. Kosovo's government needs to focus on
implementing laws on reporting and preventing money laundering, such as banning secret bank accounts,
reporting to the government if large amounts of cash are brought in or out of the country, and requiring
institutions through which laundered money is legitimized to report to the government. Lastly, the usage
of the MLDS (Money Laundering Detection System) would be efficient in the detection of this crime.
Work Cited
"Money Laundering: an Overview." law.cornell.edu. Cornell University Law School, N.d. Web. 11 Dec,
2014.
"The Speech of President Jahjaga, at the Forum 2000 Conference, in Prague." president-ksgov.net. 11
Oct,
2011. Web. 11 Dec, 2014.
CND Topic A
Qerimi, Besart. "Improved Strategies for Anti-Money Laundering in Kosovo." Nov 2010. Web. 11 Dec,
2014.
Submitted by Pakistan
The United Nations Office on Drugs and Crime (UNODC) conducted a study to
determine the magnitude of illicit funds generated by drug trafficking and organized
crimes and to investigate to what extent these funds are laundered. The report
estimates that in 2009, criminal proceeds amounted to 3.6% of global GDP, with 2.7%
(or USD 1.6 trillion) being laundered. Money Laundering - Financial Action Task
Force.com the most successful criminal ever known, it has been said that at one point
Pablo Escobar. His business was drugs at one time his cartel controlled 80% of the
world’s cocaine trade. Laundering money was central to Escobar’s empire, and his
recipe for success was relatively simple: “You bribe someone here, you bribe someone
there, and you pay a friendly banker to help you bring the money back.”biography.com
In 1989, Escobar’s personal fortune was estimated at $9 billion, making him the seventh
richest man in the world. During Sani Abacha’s five year reign as military dictator of
Nigeria he and his family managed to transfer national funds of up to £5 billion ($8
CND Topic A
billion) into foreign bank accounts.Business Pundit.com Here are some of the most
common punishment worldwide: U.S.A - Up to 30 years and fines up to 500,000 dollars.
Established in 1997 by the Vienna-based UN Office for Drug Control and Crime
Prevention, the Global Program Against Money Laundering provides Governments with
legal advice and assistance in drafting appropriate legislation and establishing the
necessary administrative framework to counter money laundering. In its first year of
operation, the Program assisted 20 countries and initiated a global comprehensive
database on national money laundering legislation. The General Assembly Special
Session on the World Drug Problem, to take place at UN Headquarters in New York on
8-10 June 1998, aims to increase international cooperation to combat money
laundering. "We are proposing a bold initiative for the abolishment of bank secrecy
worldwide for every investigation on organized crime, not
just drugs", says Pino Arlacchi, Executive Director of International Drug
Control.FAFT.org
Here in Pakistan we want the UNDOC to come and educate us about money
laundering. We want the world to follow the U.S.A law for money laundering. We want to
have banks track their clients and notify the local police if anything suspicious is going
on. We want banks to be more educated. The U.N can send people to educate banks.
Bibliography
"KnowYourcountry". Pakistan Third. World Review. KnowYourCountry,July 07, 2014
http://www.imf.org/external/pubs/cat/longres.aspx?sk=41699.0
"Pablo Escobar." Bio. A&E Television Networks, 2014. Web. 17 Dec. 2014.
http://www.biography.com/people/pablo-escobar-9542497#!
CND Topic A
"Money Laundering - Financial Action Task Force (FATF)." Money Laundering Financial Action Task Force (FATF). Web. 17 Dec. 2014. <http://www.fatfgafi.org/pages/faq/moneylaundering/>.
"Money Laundering." UN News Center. UN. Web. 17 Dec. 2014.
<http://www.un.org/ga/20special/featur/launder.htm>.
"Business Pundit." Business Pundit RSS. Web. 17 Dec. 2014.
<http://www.businesspundit.com/10-most-notorious-money-laundering-cases-of-the20th-century/>.
"How Money Laundering Works - HowStuffWorks." HowStuffWorks. Web. 17 Dec.
2014. <http://money.howstuffworks.com/money-laundering.htm>.
"Overview - Money Laundering." Overview - Money Laundering. Web. 17 Dec. 2014.
<http://www.irs.gov/uac/Overview---Money-Laundering>.
Submitted by:
The Republic of South Korea
The World Fact Book says that, "Money laundering ultimately facilitates a broad
range of serious criminal offenses, threatening the financial system’s integrity as a whole
country." Depending on which international agent you ask, criminals launder anywhere from
$500 thousand and $1 billion worldwide each year at most." Money laundering is an activity
where individuals or organizations acquire or receives for themselves or others gains
monetary from a criminal offense according to the General Penal Code.
A recent report by the Customers Agency of South Korea says "A growing concern
has been an increasing rise in the amount of money laundered from South Korea into the
United States." They also noted that in 2013 was 8.5 million (7.5 million won) which is a
huge amount rise from 2009 which was $88,900 ($1000 won.) Currently $2.5 trillion is
laundered globally. As a result from this money laundering Korean Financial Intelligence
Unit (KoFIU) was officially launched in November 2001 and is composed of 60 experts from
CND Topic A
various agencies including the Ministry of Finance and Economy and the Justice Ministry of
Finance Supervisory committee the Bank of Korea the National Tax Service, the National
Police Agency, and the Korea customs service. KoFIU analyzes suspicious transaction
reports and forwards information deemed to require further investigation to the public
prosecutors office and as of 2006 also to the Korean police. (According to BBC news.)
With the understanding that much money is laundered worldwide we as a country are
trying to cut down on money laundering. In June 2014, the Financial Action Task Force
(FATF) saw that we had made sufficient progress in addressing the money-laundering
problem that was so bad in 2009, and we could be removed from the regular meetings of
helping to prevent money laundering. In order to counter this criminal offense, the United
Nations Office on Drugs and Crime (UNODC) made the Global Program against MoneyLaundering (GPML) in 1997. In 1998, broadening its program to address all serious crime,
rather than drug-related offenses specifically strengthened the GPML Program. The most
recent GPML report, resolution 60/288 of the UN General Assembly in 2006, especially
works towards promotion of judicial cooperation to enhance international cooperation. The
broad objective of the entire program is to improve monitoring of serious crime, the rising
measures against money laundering, and the financing of terrorism. It's a daunting task to
trace the origins of any deposit when there are about 700,000 global wire transfers occurring
every day (anti-moneylaundering.org).
All over the world the effects of money laundering are straining social, economic and
security terms (havocscope.com). On the socio-cultural end of the spectrum, successfully for
the people who perpetrate it laundering money means that criminal activity actually pays off.
This success encourages criminals to continue their illicit schemes because they get to spend
CND Topic A
the profit with no repercussions. This means more fraud, more corporate embezzling more
drugs on the streets, more drug-related crimes, that stretch law-enforcement at max, and a
general loss of morale on the part of legitimate business people who don't break the law and
don't make nearly the profits that the criminals do. As a whole world we need to cut down on
money laundering and as a country we are willing to lead the world in trying to stop this
problem. In the next 3-5 years our goal is to create severe punishments and stronger judicial
laws for money laundering. We also need to put an end to it by making a law that has harsher
punishments for the people who do the crime. We need to enforce that it is illegal because if
we don't people will continue to do it. As a country we should help the rest of the world to
think that it is as serious crime as it is.
Resources
Lee, Me-Hohn, and Seoung Choi. "Anti-money Laundering Forum." Anti-money
Laundering. Anti-money Laundering, 23 Mar. 2011. Web. 20 Oct. 2014. <http://www.antimoneylaundering.org/asiapacific/South_Korea.aspx>.
Edit Citation
"Money Laundering." BBC News. BBC News, 8 Dec. 2014. Web. 8 Dec. 2014.
<http://www.bbc.com/news/>.
"The World Factbook." Central Intelligence Agency. The World Fact Book, 20 July 2014.
Web. 1 Dec. 2014. <https://www.cia.gov/library/publications/the-worldfactbook/geos/ks.html>.
CND Topic A
Saudi Arabia
1.In the modern world we have terrorists. Like corporations and businesses, terrorist groups
have to be funded for weapons and supplies. Obviously though, not many people want to fund terrorist
groups. So the groups launder money. I stand in front of you as a representative of the kingdom of Saudi
Arabia to talk about this. Money laundering is a serious crime. It involves money being illegally obtained
from drug trafficking, illegal gambling and tax evasion. This is known as “dirty” money. Then the money
must be “cleansed” so bankers will not be suspicious. In 1996 the financial action task force on money
laundering stated, “overall, it is absolutely impossible to produce a reliable estimate of money
laundered and therefore the FATF does not publish any figures for this regard”. To prevent this criminal
act from happening, some tasks are needed to be done. In 1970 the USA. Passed a law saying that all
transactions must have a source and transaction 5,000 or higher, now raised to 10,000 must be
reported. This law is highly effective and helps stops millions of dollars in terrorist funding.
2.
The kingdom of Saudi Arabia has always bee at the forefront of preventing money laundering.
For many years our proud country has been plagued with this out of control problem, and is desperately
CND Topic A
trying to stop it. Our nation was one of the first countries to give special attention to this illegal act. Our
anti money laundering law states that all financial documents must be reviewed annually. In the future, I
think that the United States’ plan of attack should not only be used in Saudi Arabia, but the whole world.
Having a maximum amount of 10,000 or above should be reported. This would help lower the amounts
of crime, and less terrorist funding.
Submitted by:
Sierra Leone
Globally money laundering is a big problem, used a lot in the illegal drug trade. Some
countries that have this problem are of course Sierra Leone, the USA, Philippines, and Israel
but these are just a few. Money laundering is the processing of when criminal proceeds when
someone does a crime and gets paid or gets other assets. This process is of critical
importance, as it enables the criminal to enjoy these profits without jeopardizing their source.
Money laundering is urgently coming along do to the industry traveling at such a speed.
Usually the deeper in a bank the or the "dirtier" the money gets the harder it is to track.
So let's get are own in need country of Sierra Leone. Money laundering is one are
many problems in Sierra Leone. Money laundering usually occurs in the automobile
industry and the diamond real estate. The atmosphere of Sierra Leone is conducive to money
laundering. In Sierra Leone are regulations are weak, loose oversight of financial institutions,
and a large informal money exchange system. In 2005 we made a step forward by president
Alhaji Ahmad Tejan passing the anti money-laundering act.
CND Topic A
Let's go to a very popular country in North America where money laundering is
common. The USA, in only the month of September there were 13 cases the biggest one to a
man named Avlaro Lopez Tardon. Tardon was sentenced 150 years in prison and fined $16
million for laundering millions of dollars for 10 years.
Money laundering happens a lot in our backyard.
As a country we have tried to stop money laundering and we suggest other countries
should follow in are footsteps you passing an act like the AMLA.
The AMLA applies to all financial institutions in 2008 Sierra Leone had a conference with
Sierra Leone's central bank and the local banks to discuss and establish guidelines. Other
countries should increase the penalty of money laundering possibly creating punishments for
financial institutions if they do not meet the desired reporting requirements. Together with
the help of the UN, we can help turn the tide on money laundering.
Resources:
Anti money laundering (AML). EDcomm company, copyright 2012, 12-18-14.
<bankersacdemy.com>
Money Laundering and Globalization.UNODC,Copyright 2014.11-10-14.<UNODC.ORG>
Money Laundering.ADOBE READER,8-1-12.12-17-14.<treasury.gov>
CND Topic A