Summary: Fighting Money Laundry Through Monetary Policy

Fighting money laundry through monetary policy in the economy ECO200-Macroeconomic Spring:2018

Introduction:

What is money laundry?and what is it’s process?

Money laundry is an illegal way to make illegal ,or fake(dirty money) by making it look exactly like a real (clean) money, the criminals use many ways of confusing to hide this crime by three steps, First of all, they start with introducing the illegitimate funds into the legitimate financial system , and this is called (Replacement) the second step is to move the money around by wiring, or by transferring it through huge accounts to create a big confusing that makes it really

They should, for instance, bring law implementation and money related administrative specialists together with the private part to empower monetary establishments to assume a part in managing the issue. This implies, in addition to other things, including the significant experts in building up budgetary exchange announcing frameworks, client ID, record keeping benchmarks and methods for confirming consistence.

Money launderers have shown themselves through time to be to a great degree inventive in making new plans to go around a specific government's countermeasures. A national framework must be sufficiently adaptable to have the capacity to recognize and react to new illegal tax avoidance plans. Anti-money laundering measures frequently drive launderers to move to parts of the economy with feeble or insufficient measures to manage the issue. Once more, a national framework must be sufficiently adaptable to have the capacity to stretch out countermeasures to new zones of its own economy. At last, national governments need to work with different locales to guarantee that launderers are not ready to keep on operating simply by moving to another area in which money laundering is