Question

Instructions:

1. This is a short essay assignment in which you need to write a critical response that is analytical and insightful.

2. The question:

In chapter 9, we have discussed major economic crimes including: Fraud, Bribery, Forgery, Credit Crimes, Financial Market Crimes, and Money Laundering Crime.

Examine only one of the above economic crimes by providing a definition of the crime, some legal features, and a discussion of the effects of the crime on the economy.

Answer 1

As we know that, in each and every econnomy there are different types of economic crimes such as bribery, fraud, credit crime, financial market crimes, forgery and money laundering crimes. Each and every crime has it's impact on the econnomy. These crimes are harmful for the econnomy as a whole.one person takes the advantage of another person by doing such crimes. laundering. Money laundering is usually used by criminals to hide money made through illegal act. It is the process by which huge amount of money obtained unlawfully, from drug trafficking, terrorist activity or other severe crimes. Money laundering has an unfavourable impact on economy and political steadiness of nation. It is necessary that all nations of the world must jointly device policies and adopt measures to curb act of money laundering by resorting to forceful enforcement of law.

Money laundering crime:- Money laundering crime is one of the most serious crimes faced by the many economies of the world. It has bad imapacts on the econnomy. Money laundering is an economic crime,which means giving illegal money legal name. For example when a person has huge sum of money, he hides this money in foreign banks and after a time period he invests this money in building projects and doing other legal investments. The money laundering is done to evade from the taxes. In India we see money laundering is usually done by opening bank accounts in Swiss banks. The money laundering drains the money out of the country.

Money laundering is considered a serious economic crime. Money laundering is illegal because it allows criminals to profit from crime, and it usually involves more than one illegal step to take place:Having travelled through a number of financial transactions, the proceeds of the crime are now fully integrated into the financial system and can be used for any purpose.

Money laundering has devasted the economies in which it is occurring. The effects of money laundering are very dangerous. Money laundering damages the financial-sector institutions that are critical to economic growth (internal corruption & reputational damage); reduces productivity in the economy's real sector by diverting resources and encouraging crime and corruption, which slow economic growth; distorts the economy's external sector .

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