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INTRODUCTION

Money laundering and terrorists finance are two financial vices which perpetually threaten the global financial market. Money laundering can be traced as far back as the early part of the 20th century to famous Chicago gangster; Al Capone.
To analyse the risks of these two financial vices to the global financial system, one will have to deal with each aspect separately.

Money laundering has never had a well concise settled definition. For the purpose of this work .One will look at the definition put forward by some legal scholars and institutions involved in eradicating this horrible economic drain.
Hal gives a general definition of money laundering as
“…the process in which criminal activities like drug trafficking generate large cash receipts which are deposited in the banking system of major countries, where the drugs are sold, and then moved to offshore banking centres or into legitimate businesses.” .
Ellingers in his book defines money laundering as “...the term used to describe the process that disguises the (usually criminal) source of money.”

A working definition of money laundering was adopted by the International Police general assembly in 1995, which defined money laundering as
“...any act or attempted act to conceal or disguise the identity of illegally obtained proceeds so that they appear to have originated from legitimate sources.”

Furthermore Mariano-Florentino, defines money laundering by creating a vivid scenario of the various transactions that amount to money laundering.

All these definitions bring out the aspect of proceeds from crime trying to be infiltrated into the financial market to give it a more legitimate form which is the generally accepted definition of money laundering.

On the other hand, terrorist finance will be the mere financing of terrorists acts by people who share the same political...