What is Money Laundering?
What is Money Laundering?
The term "money laundering" refers to the activities and financial transactions are conducted in order to hide the true origin of funds received. In most cases, this money is earned illegally and the goal is to give the appearance that illegal money that comes from a legitimate source.
Why IRS-CI is involved in money laundering investigations?
A glance at the newspapers is evidence that crimes related or motivated by money are in most criminal activity in the nation. Tax evasion, public corruption, fraud in health care, money laundering and drug trafficking are all examples of the types of crimes related or motivated by money. In these cases, a financial research is often important to obtain a conviction. For this reason, Internal Revenue Service – Criminal Investigation, IRS-CI (Internal Revenue Service – Criminal Investigation) is one of the main agencies involved in money laundering investigations.
Money laundering is a complex crime of intricate details, which usually involves numerous transactions and financial affairs throughout the world. IRS-CI has the financial investigators and the skill or knowledge necessary to "follow the money."
IRS-CI is focused on money laundering where this kind of conduct violates tax laws. According to the IRS, money laundering is the manner by which criminals evade paying taxes on the illegal entry to hide the source and amount of profit. Money laundering is in fact active tax evasion.
When it could not prosecute Al Capone for other crimes, the Internal Revenue Service could obtain a conviction against him for tax evasion. When an Al Capone went completely surprised the Federal Court, said: "This is absurd. You can not collect taxes on illegal income! "
If money laundering laws had existed in 1930, Capone had also been charged with these crimes. Since October 1986, when it passed the Law to Control Money Laundering, members of organized crime and many other individuals have been charged and convicted for tax evasion and money laundering.
When a criminal has a lot of illegal entry, has to do something with that money to hide it from the IRS. Criminals launder money trying to have a look legitimate, and thus afford to spend or invest in property without the intervention of the IRS and tax consequences.
One of the ways to launder illegal funds is to take the money outside the U.S. and then enter the country again, in a clean, usually disguised as a loan. Another method is to channel or mix money through various business activities, so that in this way can give a semblance of legal origin of money.
Why A Financial Investigation?
Financial investigations are by nature, intense with respect to the documentation required. Involve for example, records of bank accounts or real estate records, which point to the movement of money. Any document which belongs or to reflect the sequence of events that point to the movement of money is important. The primary goal in a financial investigation is to identify and document the movement of money during the course of a crime. The link between the origin of money, who receives, when it is received, and where it is stored or deposited, can provide evidence of criminal activity.
The IRS-CI investigation of cases involving illegal income from money laundering are a vital component of the National Strategy Against Money Laundering of the American nation. The long hours that come with financial tracking and documenting evidence, we allow the research is directed toward individuals involved in money laundering and eventually the leader of criminal enterprise.
A complete financial analysis and reconstruction of illegal activity (such as a drug organization or a ruse to abuse trust), could document the financial activities related to income not reported on tax returns and money laundering, which are a key to securing a conviction.
Money laundering creates an underground economy tax not affecting the strength of our economic system. Is a global threat arises in our financial systems.
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