Abstract

Most crimes are driven by financial gain, and money laundering is the process criminals use to obscure the illicit origins of their wealth and safeguard their assets from law enforcement. This process allows criminals to give the appearance that their expenditures come from legitimate sources. Both criminals and terrorists use money laundering techniques, though terrorists focus more on hiding the destination and purpose of the funds rather than the source. By employing strategies similar to those used by criminal money launderers, terrorists can finance their activities discreetly. The ability to identify the origin of illicit funds and the individuals involved is crucial in preventing and detecting money laundering. Intelligence and investigative tools are effective in uncovering and disrupting the activities of both criminals and terrorists. Financial institutions, which rely heavily on their reputation for integrity, must avoid any association with money laundering, as it can severely damage their credibility and drive away legitimate business. Money laundering can transform international financial centers into havens for "dirty money," attracting short-term growth while deterring stable, long-term foreign direct investment that supports sustainable development. This practice can destabilize a country's economy by affecting cash demand, making interest and exchange rates more volatile, and increasing inflation, particularly in regions where criminal groups are active. Furthermore, money laundering facilitates corruption and organized crime, enabling corrupt public officials to conceal bribes, kickbacks, public funds, and occasionally foreign development assistance. Organized criminal organizations launder the proceeds from drug trafficking and commodity smuggling, while terrorist groups use these networks to fund the purchase of weapons. Allowing such activities to persist can have severe social consequences. One of the most effective ways to combat these groups is by seizing the proceeds of their crimes. Globalization has allowed criminals to move funds across international borders rapidly, but the international community has become increasingly aware of the threats posed by money laundering . Consequently, governments worldwide have committed to taking action, with support from the UN and other international organizations dedicated to assisting in this effort.

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