This presentation by a group of students from the University of Barisal provides an overview of money laundering. It defines money laundering as the process of making illegally gained money appear legal. The presentation outlines common money laundering techniques like structuring, offshore accounts, and investing in businesses. It also discusses the objectives, processes, criminals involved in, and impacts of money laundering, including economic distortions, facilitating crime and corruption, and reducing foreign investment. In particular, the presentation examines a case of alleged money laundering by Bismillah Group in Bangladesh through forged export contracts, and the damage money laundering causes in developing countries like Bangladesh.

1. Welcome to our Presentation

2. Department of Accounting & Information Systems (2nd
Batch)
University of Barisal

3. A presentation on Money laundering
By group no: 05

4. Group members
ID Number1 Name
13 AIS 002 Sarmin Akter Mitu
13 AIS 018 Shariful Islam
13 AIS 029 Sabina Akter
13 AIS 038 Ranu Mondal
13 AIS 040 Shuvankar Halder
13 AIS 046 Md. Zebon hossain
13 AIS 081
Rafiq-Al-Azad

5. What is Money laundering?
“Money Laundering' is the process by which illegal
funds and assets are converted into legitimate
funds and assets..”

6.  Money laundering as a crime only attracted
interest in the 1980s, essentially within a drug
trafficking context.

7.  Money laundering methods have become more
creative since 1989 and 1933.
 Terrorist financing, although only one aspect of
money laundering, has become a critical concern
following the events of September 11, 2001.
 The international dimension of money laundering
was evident in a study of Canadian money
laundering police files. They revealed that over 80
per cent of all laundering schemes had an
international dimension

8. Objectives of Money laundering
 The main objectives of money launderers are thus
to place their funds in the financial system without
arousing suspicion, to move them around, often
after a series of complex transactions crossing
multiple jurisdictions so that it becomes difficult
to identify their original sources, and finally to
move the funds back into the financial and business
systems so that they appear legitimate.

9.  Money laundering is performed systematically
and clandestinely, making it difficult to identify
exactly how much money is involved, what
methods are employed and what the magnitude of
the problem is.

10.  Hide: to reflect the fact that cash is often introduced to
the economy via commercial concerns which may knowingly
or not knowingly be part of the laundering scheme, and it is
these which ultimately p y prove to be the interface
between the criminal and the financial sector
 Move: clearly explains that the money launderer uses
transfers, sales and purchase of assets, and changes the
shape and size of the lump of money so as to obfuscate the
trail between money and crime or money and criminal.
 Invest: the criminal spends the money: he/she may invest it
in assets, or in his/her lifestyles

11. Process of Money laundering

13. of Money laundering
 Absence of legislation
 Evasion of tax
 Increase in profits
 To make black money
appear white money
 Limited risks of
exposure

14. Money laundering technique & method

15.  Structuring/ SmurfingStructuring/ Smurfing
 Cash smugglingCash smuggling
 Offshore accounts (Shell banks)Offshore accounts (Shell banks)
 Shell companies and trustsShell companies and trusts
 Underground bankingUnderground banking
 GamblingGambling
 Investing in legitimate businessInvesting in legitimate business
 Round- trippingRound- tripping
 Bank captureBank capture
 Black salariesBlack salaries
MONEY LAUNDERING TECHNIQUESMONEY LAUNDERING TECHNIQUES
AND METHODSAND METHODS

16.  Drug DelarsDrug Delars
 Mobsters or Gang membersMobsters or Gang members
-Bad Politicians-Bad Politicians
- Bad Public Officials- Bad Public Officials
-Embezzlers-Embezzlers
-Terrorists-Terrorists
Criminals of Money launderingCriminals of Money laundering

17. CriminalsCriminals

18. Effect of money launderingEffect of money laundering

19.  Economic Distortion and Instability.Economic Distortion and Instability.
 Money laundering facilitates corruption and crimeMoney laundering facilitates corruption and crime
 Loss of Control of Economic PolicyLoss of Control of Economic Policy
 Undermining the integrity of financial marketsUndermining the integrity of financial markets
 Risks to Privatization EffortsRisks to Privatization Efforts
 Reputation at stakeReputation at stake
 Money Laundering distorts capital and trade flowsMoney Laundering distorts capital and trade flows
 Evasion of taxEvasion of tax
on Economyon Economy

20.  Increase In Criminal ActivitiesIncrease In Criminal Activities
 Concentration Of Power To CriminalsConcentration Of Power To Criminals
 Undermines DemocracyUndermines Democracy
on Societyon Society

21. on Businesson Business
If funds from criminal activity can be easily processedIf funds from criminal activity can be easily processed
through a particular business – either because itsthrough a particular business – either because its
employees or directors have been bribed or because theemployees or directors have been bribed or because the
institution turns a blind eye to the criminal nature of suchinstitution turns a blind eye to the criminal nature of such
funds – the institution could be drawn into active complicityfunds – the institution could be drawn into active complicity
with criminals and become part of the criminal networkwith criminals and become part of the criminal network
itself. Evidence of such complicity will have a damagingitself. Evidence of such complicity will have a damaging
effect on the attitudes all stakeholders of company i.e.effect on the attitudes all stakeholders of company i.e.
shareholders, suppliers, customers, employees etc.shareholders, suppliers, customers, employees etc.

22. Impact of money launderingImpact of money laundering
on economy of the worldon economy of the world

23. Impact on World economyImpact on World economy

24. Impact on financial sectorImpact on financial sector
1.1. Increased Crime and CorruptionIncreased Crime and Corruption
2.2. Undermining the Integrity of FinancialUndermining the Integrity of Financial
Institutions and MarketsInstitutions and Markets
3.3. Loss of Control of the National Economic PolicyLoss of Control of the National Economic Policy
4.4. Economic Distortion and Investment InstabilityEconomic Distortion and Investment Instability
5.5. Undermining the Legitimate Private SectorUndermining the Legitimate Private Sector
6.6. Risk to Government Privatization EffortsRisk to Government Privatization Efforts
7.7. Reputation RiskReputation Risk
8.8. Loss of RevenueLoss of Revenue

25. Impact on real sectorImpact on real sector
1. Money laundering distorts investment and depresses1. Money laundering distorts investment and depresses
productivity.productivity.
2. Money laundering facilitates corruption and crime at2. Money laundering facilitates corruption and crime at
the expense of developmentthe expense of development
3. Money laundering can increase the risk of3. Money laundering can increase the risk of
macroeconomic instabilitymacroeconomic instability
4. Criminal organizations can transform productive4. Criminal organizations can transform productive
enterprises into sterile investments.enterprises into sterile investments.
5. An efficient money-laundering channel is a key "input"5. An efficient money-laundering channel is a key "input"
to crime because the financial proceeds from crime areto crime because the financial proceeds from crime are
less valuable to the criminal than are laundered funds.less valuable to the criminal than are laundered funds.

26. Impact on External Sector:Impact on External Sector:
 Money Laundering restricts capital flows Money Laundering restricts capital flows
facilitating illicit capital flight.facilitating illicit capital flight.
 Money laundering depresses foreign investment. Money laundering depresses foreign investment.
 Distorts prices and contents of the product. Distorts prices and contents of the product.
 Worsens scarcity of capital in the developing Worsens scarcity of capital in the developing
countries like Bangladesh.countries like Bangladesh.
 Causes difficulties in policy making. Causes difficulties in policy making.
 Discourages the foreign economic agents to invest Discourages the foreign economic agents to invest
in the developing countries like Bangladesh.in the developing countries like Bangladesh.

27. Money launderingMoney laundering
&&
BangladeshBangladesh

28. MONEY LAUNDERED FROM BANGLADESHMONEY LAUNDERED FROM BANGLADESH
BETWEEN 2005 AND 2014BETWEEN 2005 AND 2014

29. Several Money laundering of BangladeshSeveral Money laundering of Bangladesh
 ML Bismillah Group.
 ML of Apon Jewelers.
 ML of BPL
 ML of B-kash Agent

30. A case onA case on
“Money laundering of Bangladesh”“Money laundering of Bangladesh”

31.  Introduction : By the inspection of ACC, it is found that
Bismillah Group by using forged export contract embezzled
of huge amount of money from Bhaban Corporate Branch,
Moghbazar Branch and Elephant Road Branch of Janata Bank
Limited, Dilkusha Branch of Jamuna Bank Ltd., Motijheel
Branch of Premier Bank Ltd., and from Eskaton Branch of
Shahjalal Islami Bank Ltd.

32. How Bismillah group embezzled money?
 The concerned bank managers including officials by
violating Guidelines for Foreign Exchange Transaction
2009, being profited or hoping to be profited,
adjusted the fake/forged accommodation bills to the
effect that goods had been exported by the companies
though it was not done.
 Later on, without showing any objection against 'Back to
Back Letter of Credit (LC)'of Bismillah Group, they
assisted directly the alleged Khaza Solaiman Anwar
Chowdhury with others to misappropriate money through
corruption, fraud and forgery.

33. Who are the alleged persons:
 In the 12 cases, total alleged persons are 53 and amount
of embezzled and laundered money is BDT 1174.46 core.

34. Present situation of this Case:
Four investigation officers of the Commission already
submitted investigation study’s of the cases. Further
lawful measures will be taken according to the
decision of the Commission.

35. Impact of money launderingImpact of money laundering
in developing country like on Bangladeshin developing country like on Bangladesh
1. Reduced intention to deposit among the1. Reduced intention to deposit among the
common savers.common savers.
2. Damaged Reputations and International2. Damaged Reputations and International
ConsequencesConsequences
3. Weakens Financial Institutions3. Weakens Financial Institutions
4. Providence of less loans and advances in4. Providence of less loans and advances in
the executive areas.the executive areas.

36. 5. Damaged Privatization efforts5. Damaged Privatization efforts
6. Loss of control of National Economic Policy6. Loss of control of National Economic Policy
7. Initiates the growth of illicit way of7. Initiates the growth of illicit way of
money earnings and transference.money earnings and transference.
8. Reduces foreign investments8. Reduces foreign investments
9. Comprised economy and private sector.9. Comprised economy and private sector.
Impact of on BangladeshImpact of on Bangladesh

37. Prevention of money laundering
 Follow the ACT of Anti Money laundering
AML refers to a set of procedures, laws and regulations
designed to stop the practice of generating income
through illegal action.
AML act is 2012 which amended on 2013.

38. Prevention of money laundering
 Strict Laws
 Government regulations
 Proper Monitoring by
 BB
 Ministry of Finance
 Other government authorities

39. Penalties of money laundering:
 Penalties for offence committed by a person:
According to Section 4(1) of the Act-2012, Any person
engaged in money laundering or abetting, aiding or
conspiring in the commission of such offence shall be
punishable with imprisonment for a term not less than 4
(four) years and a maximum not exceeding 12 (twelve)
years,
 In addition fine equivalent to that, a fine equivalent to
the twice of the value of the property involved in the
offence or taka 10 lacks whichever is high.

40.  and in addition to this, property involved with
the offence shall be forfeited in favor of the
state.

41.  Penalties for offence committed by a
Company:
 Shall be punished with a fine of not less than twice of the
value of property engaged in money laundering or taka 20
lacks whichever is higher.
 In addition if any company has been engaged in money
laundering activity, either directly or indirectly, then
registration of that company will be cancelled. [Section
27(2) of Act]
Penalties

42. Conclusion
Until such time as we effectively address these
problems, our economy will continue to be
vulnerable

43. Thanks 2 All

44. Any questions?