Money Laundering Argument Investigation - Report Example

Money Laundering Argument Paper The paper discusses monetary laundering in the international context. Such issues as economical regulations of different countries, participation of the banking systems and involvement of different politicians in the sphere of illegal businesses underline the importance of making an argument in a more comprehensive manner basing on the modern researches and studies. Introduction: Thesis statement: Money laundering is the phenomenon that works against the humanity and undermines the stability and peace even in the most advanced societies. There are many definitions of money laundering. Currently, there is a need to consider it in a more global context and in the international arena. Money laundering implies converting of illegal money, gained from illegal businesses (such as drugs trafficking, prostitution etc) into legal financial assets by means of legal financial instruments (bank deposits, depositions of funds etc). The case of the Bank of New York (1999) is correlated with the money laundering schemes implemented I America. The involvement of new Russian mafia in the banking system of America, as well as the most famous and influential politicians of Russia, points out that money laundering occur at the governmental and international levels even more often than at the local levels (Stessens, 2000). Further on we will consider economical and social implications of money laundering of different countries and take into account the most negative outcomes of these illegal activities. The United Nations Office on Drugs and Crime is probably the biggest organization advocating the issue and trying to reduce its scope. UNODC (2011) asserts that globalization makes money laundering easier, and the task of fighting with it becomes extremely problematic. Therefore, placing the funds in the banking system implies illegal disposition of money gained by drug sellers or weapon traffickers and this activity should be properly checked and controlled by the government. Unfortunately, the governments have their own interest in raising profits on the illegal basis. Argument PRO one: Money laundry is against the humanity. It comes from criminal activities. This phenomenon is closely connected with criminal cases. There is a need to redirect illegal activities in legal business activities in order money would benefit for the society. Moreover, criminal activities are the result of short-sighted policies of different countries. In case the economies of the countries and the governmental institutions would be much more concerned about legal businesses, than the issue of money laundering would disappear for sure. Unfortunately, many governments have their own interest in money laundering and this is explained by the government’s neglecting attitude to many interesting facts. The fact of government’s interest in money laundering is often illustrated by the absence of a proper concern about blood diamonds sell or drugs trafficking (Block & Weaver, 2004). Not enough and proper attention is paid, no measures are taken. Further on, dirty money are converted in the cash dollars and the International Banking system, as well as the banks of different countries take into account taking preventive measures against illegal banks activities. Drug traffickers of Mexico have developed numerous schemes of drugs trafficking and money laundering as well. In the study conducted by Grosse (2001) these schemes are properly considered. There is a need to put much efforts and creative potential in order to develop and implement the schemes of money laundering: "from shipping suitcases of dollars to Mexico to buying gold with drug cash in California to faking the export of clothing from Colombia to Panama, the clandestine activities of the launderers are truly fascinating" (Grosse 2001, p. 9). Argument PRO two: Money laundering preaches the walls of security in even the most advanced communities, because it is rather dangerous for people to exist next to diamonds, which are sold for weapons and to present this bloody jewelry to a beloved person. Moreover, very often drugs can be bought in different places and people know about this fact. Is it fair, or is it better to prevent the options of buying drugs? There is no doubt that involvement of the government in the regulations of money laundering is the first and foremost preventive measure. For example, legal regulations approved by America, such as Money Laundering Control Act of 1986, Money Laundering Commission Publications in Canada and many others, underline the greatest concern of the governments about prevention of this illegal activities (Beare, 2007; Stessens, 2000). Unfortunately, next to the names of illegal dealers, very often the names of famous politicians stand nearby. Counterargument: Thousands of people believe that, despite the dangers presented by money laundering, it is a unique source of profits and dominance for the advanced world. Money laundering is a kind of manipulation of poorer nations and rich countries support their dominance by buying diamonds from poor nations and providing them with weapons instead. Governmental enrichment by means of illegal businesses implies the process of easy profits increase. However, this assumption is at least erroneous, since governments are fighting against money laundering and pass the laws against it. For example, Money Laundering Control Act of 1986 approved in American subscribes penalties to those parties, involved in illegal trade or unlawful businesses. Still, it is only an external appearance of money laundering regulations, because very often it is very profitable for the government to raise money without making investments in some projects, but just in the process of profitable exchange of diamonds or drugs for weapons (April & Grasso, 2001). Conclusion: Definite conclusions can be made on the base on the discussion held above. As far as we can see, money laundering is the ever existent social and economical phenomenon of different states. Various policies both at the governmental and local levels are taken by different governments, but very often these measures are taken only nominally. On the examples of the studies considered above, money laundering should be considered as a complex phenomenon, which may lead to serious negative outcomes for the societies of the developed and the developing countries. These negative outcomes need to be declared by scholars and must not be concealed from people. Annotated Bibliography 1. Grosse,R.E. (2001). Drugs and money: laundering Latin Americas cocaine dollars. Praeger Pulishers. Retrieved December 17, 2011 from: http://www.google.ae/books?id=ojiH7IZRjiAC&lpg=PR7&ots=vkuthAVvVC&dq=money%20laundry%20sources&lr&hl=ar&pg=PA3#v=onepage&q=money%20laundry%20sources&f=false The book is focused on the most extravagant schemes of money laundering created by drugs sellers and weapons sellers. On the one hand, the book considers the issue of money laundering in an integrative manner, but on the other hand, there is a lack of proper considerations about global perspective on money laundering. Several cases and schemes are considered in detail. 2. Beare, Margaret E. (2007). Money laundering in Canada: Chasing dirty and dangerous dollars. Retrieved December 17, 2011 from: The book is focused on money laundering in Canada. The author considers banking schemes of money laundering. Unfortunately, the book lacks of an integrative concern and correlation of money laundering in Canada with other countries. 3. Stessens, Guy. (2000). Money laundering: a new international law enforcement model. Cambridge University Press. Retrieved on December 17, 2011 from: The book is more focused on international regulations of money laundering. It is a good integrative overview of international regulations implemented by different governments. 4. April, D. H., & Grasso, A. M. (2001). Money Laundering. American Criminal Law Review, 38(3), 1051. Retrieved December 17, 2011, from Questia database: http://www.questia.com/PM.qst?a=o&d=5001035116 The journal article considers American perspective on money laundering. It discusses the regulation of America against money laundering introduced in 1986. The main points of the document are considered. 5. Block, A. A., & Weaver, C. A. (2004). All Is Clouded by Desire: Global Banking, Money Laundering, and International Organized Crime (W. J. Chambliss, Ed.). Westport, CT: Praeger. Retrieved December 17, 2011, from Questia database: http://www.questia.com/PM.qst?a=o&d=106724408 The book provides an international discussion about the issue of money laundering. It is more focused on the global banking system and the mechanisms within the system, which are focused on money laundering in different countries. 6. Stessens, G. (2000). Money Laundering: Pinochet, the Junta, and A New International Law Enforcement Model. Cambridge, England: Cambridge University Press. Retrieved December 17, 2011, from Questia database: http://www.questia.com/PM.qst?a=o&d=105020152 The book discusses money laundering in the beginning of the global era. Different mechanisms are taken into account and international regulations and laws of legal policies enforcement are considered further on. 7. UNODC. (2011). Introduction to money-laundering. United Nations Office on Drugs and Crime. Retrieved from http://www.unodc.org/unodc/en/money-laundering/introduction.html The article discusses the basics of money laundering, its main features and implications for the world. Read More