Corruption & Money Laundering Flashcards

1
Q

Globalization

A
  • integration of world economics, politics & cultures
  • implies the removal of barriers
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2
Q

Domestic

A

pertaining to one’s own country

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3
Q

Per Capita Income

A

income per person

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4
Q

Developed Country

A

high per capita & industrialized

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5
Q

Newly Industrialized

A

either high per capita income or industrialized, not both

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6
Q

Developing Country

A

low per capita, not industrialized

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7
Q

Transnational Organized Crime

A

criminal enterprise producing a profit from illicit activities

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8
Q

International Crime

A

violations against the peace and security of people based on international agreements

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9
Q

Illicit

A

illegal, unlawful, criminal

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10
Q

Black Market

A

a system in which items are bought and sold illegally

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11
Q

Embezzlement

A

money obtained and/or misused without authorization

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12
Q

Nepotism

A

use of public office to benefit a family member

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13
Q

Bribery

A

voluntary exchange of benefit to influence an act

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14
Q

Extortion

A
  • obtaining property/money using threats of harm
  • usually a threat
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15
Q

Influence Peddling

A

using one’s position or political influence in exchange for $ or favors

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16
Q

Red Tape

A

excessive bureaucracy or adherence to rules and formalities, especially in public business.

17
Q

Money Laundering

A

the act of causing money that comes from Source A to look like it comes from Source B

18
Q

Hawala

A
  • Middle East
  • Trust based systems w/ ancient roots
  • No paper trail
  • Operate outside of gov.’s control & save on transaction fees
19
Q

Shell Company

A
  • fake companies
  • exist only to launder money
  • provide no goods or services
  • appearance of legitimate transactions through fake invoices
20
Q

Front Company

A
  • small cash business (car washes, liquor stores, grocery stores)
  • provide actual goods & services
  • combine dirty $ w/ clean revenues
21
Q

Bank Secrecy Act

A

assistance in preventing money laundering

22
Q

Patriot Act

A
  • mandatory identity checks for banking costumers
  • resources for tracking underground transactions
23
Q

Financial Action Task Force

A
  • 39 members
  • International Policy > making organization
  • Anti- money laundering “recommendations”
  • Promotes a uniform method
  • Discourages dealings w/ uncooperative countries
24
Q

Effect of Technology on Crime

A

the more online payments, the less likely of fraud

25
Q

Factors Increasing the Amount of a Transnational Crime in Early 1990’s

A

criminals exploit their increased ability to move goods and people.

26
Q

Classification of TOCs

A

there are three levels of classification: (i) broad offense code, (ii) specific offense code, and (iii) offense modifier.

27
Q

3 Steps to Money Laundering

A
  1. Placement
  2. Layering
  3. Integration
28
Q

Effects of Money Laundering: Social

A

Perpetuates:
- fraud
- drugs on the streets, drug-related crime
- stain on police resources
- legitimate business person loss of morale

29
Q

Effects of Money Laundering: Economic

A

Prime Targets: Developing countries
Economic Policy Errors:
- dirty cash artificially inflates economy
- economy could collapse

30
Q

Effects of Money Laundering: Security

A
  • Terrorism supporters fund terrorists via money launderng methods to maintain anonymity
  • Terrorist organizations fund operations via money laundering to purchase:
    • weapons
    • plane tickets
    • civilian assistance