Page 55 - Aug Sept 2016

Elite Investigative Journal
The Washing Machine - Fighting Money Laundering in the Middle East, pg 55-59
©2014-2016 SYT Global, Inc.
The Washing Machine - Fighting Money Laundering in

the Middle East By Hany Abou-El Fotouh

Photo Courtesy of dailytimes.com.pk
The term “money laundering” derives * To pay expenses related to their illegal

from the fact that gangsters in the activity.
1920’s commingled the proceeds * To invest their proceeds in the criminal
of their illegal operations with the cycle and boost illegal activity.

basically untraceable proceeds from * Eventually, to enjoy the profits of their
coin laundries operated by the ring, criminal activity.

thus making the funds appear as if they
been derived legitimately. Although Today, money laundering represents an
the term may have started in the 20th estimated 2 percent to 5 percent of the

century, the practice of disguising world’s gross domestic product. Estimates
unlawful proceeds traces its roots of money laundering worldwide range

back to the dawn of banking itself. For from $800 billion to $1.6 trillion; 47
example, when the Roman Catholic percent of the launderers use banks to
Church in medieval times banned clean dirty money. While some observers

lending money at interest, financiers have challenged the accuracy of these
developed methods to get around this numbers, this problem is one of huge

restriction. proportions even after several years of
strong lobbying by the inter-governmental
Criminal organizations have three Financial Action Task Force (FATF) to
objectives for laundering the proceeds assure that banks and non-bank financial

of their illegal activity. These are:

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