Business Law Essay

4341 WordsOct 5, 201118 Pages
BUSINESS LAW AND ETHICS ZCZB 6013 GROUP ASSIGNMENT “MONEY LAUNDERING” Prepared for: MR. AHMAD BADRULHISAM CHE KASIM Prepared by: Ratna Marliza Mokhtar ZP00876 Ida Murni Muhammad ZP00866 Dwinta Marthasari ZP00892 Vishtash Azarnoosh ZP00811 1. INTRODUCTION Money laundering is not a new phenomenon. At its most fundamental level, the fight against money laundering is based on the recognition of its serious adverse implications on the economy and society at large, if left unchecked. Money laundering has a negative effect on economic growth as it diverts resources to unproductive activities and as it facilitates corruption and crime. Money laundering activities perpetuate crimes as they encourage the underlying criminal activity from which illicit proceeds are generated. 2. DEFINITION Section 3 of the Anti Money Laundering Act 2001 defines money laundering as: “Any act which acquire, receives, possesses, disguises, transfers, converts, exchanges or removes from or brings into Malaysia proceeds of any unlawful activity”. The Law Society defines Money Laundering as: “The process by which the proceeds of crime, and the true ownership of those proceeds, are changed so that the proceeds appear to come from a legitimate source.” Other definitions are as follows:- “An act of a person who engages directly or indirectly in a transaction that involves proceeds of an unlawful activity”. “Money laundering is the process of disguising illegally obtained money as legitimate profits, which you can then use without attracting attention”. “The process of taking the proceeds of criminal activity and making them to be appear legal”. “A conduct or acts designed in whole or in part to conceal or disguise the nature, location, source, ownership or control of money (can be currency or equivalents, example: checks, electronic transfers,

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