Money laundering is the process of concealing the origin, ownership or destination of illegally or dishonestly obtained money by hiding it within legitimate economic activities to make them appear legal.
Why it matters
Money laundering thrives when assets can be hidden through shell companies and opaque ownership structures. Governments should establish mandatory, public registers that disclose the beneficial ownership of trust funds and companies to make it more difficult and less attractive for people to benefit from the proceeds of corruption and crime. A sound Know Your Customer programme is one of the best tools in a good anti-money laundering programme for detecting suspicious activity.
Additional Information: Money laundering
- Transparency International, Unmask the Corrupt campaign
- Transparency International, Policy brief 04/2014: Regulating luxury investments: What dirty money can’t buy