Prevention of Money Laundering and Suggestion Model for Banking System

Money laundering is the process of concealing sources of money. Money evidently has gained through crime is dirty money and money that has been laundered to appear as if it came from a legitimate source is clean money. Money can be laundered by many methods which vary in complexity and sophistication. Different countries may or may not treat tax evasion or payments in breach of international sanctions as money laundering. Some jurisdictions differentiate these for definition purposes and others do not. Some jurisdictions define money laundering as obfuscating sources of money either intentionally or by merely using financial systems or services that do not identify or track sources or destinations. Many regulatory and governmental authorities estimate each year for the amount of money laundered either worldwide or within their national economy. In 1996 the International Monetary Fund estimated that two to five percent of the worldwide global economy involved laundered money.