Money Laundering

Paper Summary:

The paper explains the process of money laundering and focuses on the drug trafficking and illegal gambling industries. The paper then explores the relationship between illegal drug trade and gambling and shows how casinos have been used as ways for drug traffickers to launder money. The paper points out the limitations in prosecutors' ability to prove one is engaged in money laundering as well as the Internet and technology that make it increasingly difficult to regulate financial transactions. The paper concludes that despite these limitations, the focus on money laundering remains one of the most effective ways to curtail both the drug trade and illegal gambling.

Outline:
What is money laundering?
Drug Money Laundering
Money Laundering: Illegal Gambling
Relationship between Illegal Drugs and Gambling
Changes in the Law

From the Paper:

"The usual process of laundering drug money entails three basic steps. The first stage involves depositing the drug proceeds into clandestine domestic and foreign financial institutions that do not seem obviously illegal. Sometimes the profits are broken up into small amounts, usually less than $10,000 to avoid currency reporting requirements or through creating sham companies, casinos, wire transfer companies, or simply smuggling the currency out of the United States in suitcases or concealing the cash in some other manner (Zagaris & Ehlers 2003). In the case of a pseudoephedrine smuggling ring an airline employee was recruited at O'Hare airport in Chicago to help smuggle drug-derived cash outside of the United States, sometimes stuffing the bills in empty cereal boxes that were packed in a suitcase ("Cash Smuggling Case at O'Hare Airport," U.S. Drug Administration Press Release, 2004)."

Sample of Sources Used:

• "16 Additional People Indicted in Large Scale Drug and Money Laundering Case." U.S. Drug Administration Press Release. June 16, 2007. 24 Jun 2008.http://www.usdoj.gov/dea/pubs/states/newsrel/detroit061506.html
• "Cash Smuggling Case at O'Hare Airport." U.S. Drug Administration Press Release. January 12, 2007. 24 Jun 2008.http://www.usdoj.gov/dea/pubs/states/newsrel/chicago011204.html
• Greenhouse, Linda. "Justices narrow money-laundering law. The New York Times. January 2, 2008. June 24, 2008. http://www.nytimes.com/2008/06/03/washington/03scotus.html?_r=1&adxnnl=1&oref=slogin&adxnnlx=1214312653-Rsae8D4Y+YN4ZHPJfrPrdg
• "Internet Gambling: An overview of the issues." Report to Congress by the General Accounting Office (GAO). 2002. 23 Jun 2008.http://www.gao.gov/new.items/d0389.pdf
• "Money Laundering Indictment Unsealed Against Major Internet Gambling Site Operators, Alleges $250 Million In Online Wagers." U. S. Department of Justice Press Release. May 6, 2007. 23 Jun 2008.http://www.justice.gov/opa/pr/2006/May/06_crm_298.html

More papers on Money Laundering:

• Term Paper # 105793 : "Money Laundering"
• Persuasive Essay # 133264 : "Money Laundering: What Is It and How Do We Fight It?"
• Analytical Essay # 136347 : "Money Laundering and Assets"
• Analytical Essay # 134815 : "The Facets of Money-Laundering"

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