Question

1. Describe and explain the basic steps in a money laundering cycle

2. What are the two major ways to sue in civil courts? Explain the differences

3. Explain the Frye standard.

4. Discuss what is meant by the discovery process.

Answer 1

Money laundering is the process of converting the illegaly generated or originated money into the legal form. It is not performed by any single act but acually it involves three basic steps which are explained as follows :-

i. Placement = It is the process of placing illegaly generated or originated cash into the financial institutions or financial system. Here the main aim of launderer is to remove the cash from location of acquisition so as to prevent their detection from legal authorities of that country and then place those cash into banking system and transfer it somewhere else, so, that they can operate with high liquidity somewhere else.

ii. Layering = layering is the process involving layers of transactions so as to disguise the audit trail. The main purpose is to transfer illegaly originated cash from their place of origin to some other place by transaction through fictitious corporation and trustsso that they can nover be detected.The only purpose is to mnaipulate or disguised the entire audit trail.

iii. Integration = this is the final stage in the process of money laundering where laundered funds are reintroduced in the economy. Here the difference between the illegal cash and legal cash is almost ends..

2. Before filing a lawsuit, first thing to consider is to determine whether state or federal court has jurisdiction. Following will help in determining the jurisdiction :-

if the law is a state law then it should be filed in a state court.

if the law which is uder issue is a federal law then it should be filed in a federal court

3. Frye standard is also known as general acceptance test which is the test to determine admissibility of scientific evidence. It provides expert opinion whci is based on scientific technique admissible only when technique is generally acceptable as reliable.

4. Discovery process is the procedure adopted before the trial in a lawsuit where we obtain evidences relating to a lawsuit by using various discovery devices such as interrogation, requesting various documents relating to proceedings. It helps in obtaining a preview of what the case is.