{"id":789,"date":"2020-11-05T18:01:42","date_gmt":"2020-11-05T18:01:42","guid":{"rendered":"https:\/\/www.finahukuk.com\/en\/?p=789"},"modified":"2022-01-04T20:43:35","modified_gmt":"2022-01-04T20:43:35","slug":"the-industrialization-of-money-laundering-a-billionaire-turnover","status":"publish","type":"post","link":"https:\/\/www.finahukuk.com\/en\/2020\/11\/05\/the-industrialization-of-money-laundering-a-billionaire-turnover\/","title":{"rendered":"The Industrialization of Money Laundering, A Billionaire Turnover"},"content":{"rendered":"<h3><strong>I. INTRODUCTION<\/strong><\/h3>\n<p><span style=\"color: #000000;\"><b>Within the context of international anti-money laundering action, it is essential to know and study the AML legislation, deepening it, and fully understanding the modern doctrine of money laundering and its jurisprudential interpretation.<\/b><\/span><\/p>\n<p><span style=\"color: #000000;\"><b>To be able to intercept and shed light on fraud and to be able to seize and recover the money, it is essential to know the modern doctrine of money laundering.<\/b><\/span><\/p>\n<p><span style=\"color: #000000;\"><b>The money laundering doctrine is the discipline aimed at describing and codifying the contribution of the money laundering industry<\/b><b>.<\/b><\/span><\/p>\n<h3><strong>II. WHAT ABOUT TURKEY?<\/strong><\/h3>\n<p><span style=\"color: #000000;\"><b>In Turkey, a recent study by the FATF estimated that the turnover attributable to the criminal economy present in Turkey is approximately 7.4 billion euros per year.\u00a0<\/b><\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">This massive finance, which is underlined as it refers only to the Turkish system, is produced by the criminal economy, in its various forms:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">with <\/span><b>Organized Crime<\/b><span style=\"font-weight: 400;\"> which has its financial <\/span><i><span style=\"font-weight: 400;\">assets<\/span><\/i><span style=\"font-weight: 400;\"> in:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; Drug trafficking;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; Trafficking in human beings;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; Arms trafficking;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; <\/span><i><span style=\"font-weight: 400;\">Cybercrime<\/span><\/i><span style=\"font-weight: 400;\"> ;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; Illegal trade and counterfeiting;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; Piracy;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; Extortion;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; Abduction;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; Racking.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">with <\/span><b>Non-Fiscal Economic Crime<\/b><span style=\"font-weight: 400;\"> :<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; Corruption;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; Fraud;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; Financing of terrorism;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; Nepotism;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; Ponzi schemes;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; <\/span><i><span style=\"font-weight: 400;\">Insider trading<\/span><\/i><span style=\"font-weight: 400;\"> ;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; Financial crimes;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; Stock exchange manipulation;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; Misappropriation;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; Health crimes;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; Environmental crimes;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; Violation of competition law;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; <\/span><i><span style=\"font-weight: 400;\">Cybercrimes<\/span><\/i><span style=\"font-weight: 400;\"> ;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; <\/span><i><span style=\"font-weight: 400;\">Crypto crimes<\/span><\/i><span style=\"font-weight: 400;\"> ;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">&#8211; <\/span><i><span style=\"font-weight: 400;\">Corona crimes<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"color: #000000;\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">with <\/span><b>Economic Fiscal Crime<\/b><span style=\"font-weight: 400;\">: &#8211; Tax evasion (in countries where it is a crime); &#8211; Tax fraud.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/span><\/span><\/li>\n<\/ol>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">It is therefore understandable how the organization and <\/span><b>industrialization of money laundering<\/b><span style=\"font-weight: 400;\"> has been increasingly necessary and essential; in the light of the vast production of illegal finance, there was a need for real professionals and recycling organizations.<\/span><\/span><\/p>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">The panorama of modern international money laundering has therefore seen the phenomenon of <\/span><b><i>Shell Companies<\/i><\/b><span style=\"font-weight: 400;\"> &#8211; that is, companies with no apparent transactions, no apparent employees and no apparent physical assets. This phenomenon is the main tool used in the modern doctrine of the recycling industry that does not disdain alternative instruments to the <\/span><i><span style=\"font-weight: 400;\">Shell Companies<\/span><\/i><span style=\"font-weight: 400;\">, for example, the new technologies of <\/span><i><span style=\"font-weight: 400;\">crypto-currencies<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/span><\/p>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">Such entities can often be set up in less than 24 hours using <\/span><b><i>online <\/i><\/b><b>facilities<\/b><span style=\"font-weight: 400;\"> and not only criminals but <\/span><b>tax evaders<\/b><span style=\"font-weight: 400;\"> are taking advantage of and benefiting from them.<\/span><\/span><\/p>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">To understand the phenomenon of which we are treating you want to report the turnover and the worldwide turnover of the main <\/span><i><span style=\"font-weight: 400;\">assets<\/span><\/i><span style=\"font-weight: 400;\"> and financial income.<\/span><\/span><\/p>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">The turnover of the <\/span><b>World GDP<\/b><span style=\"font-weight: 400;\"> ( <\/span><b><i>World GDP<\/i><\/b><span style=\"font-weight: 400;\"> ) is 100 trillion euros; that of <\/span><b>Energy<\/b><span style=\"font-weight: 400;\"> (fuel, electricity, infrastructures) 15,000 billion euros; the <\/span><b>Media<\/b><span style=\"font-weight: 400;\"> 1,700 billion euros; <\/span><b>Airlines<\/b><span style=\"font-weight: 400;\"> around 800 billion euros and <\/span><b>Plastic<\/b><span style=\"font-weight: 400;\"> 800 billion euros.<\/span><\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">By comparison and by way of example of the enormous economic power of CRIME, it should be noted that:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">the <\/span><b>Economic Crime Tax<\/b><span style=\"font-weight: 400;\"> have a turnover amounting to \u00a0 <\/span><b>10 trillion<\/b><span style=\"font-weight: 400;\"> euro;<\/span><\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">the <\/span><b>Economic Crime Non-Tax<\/b><span style=\"font-weight: 400;\">\u00a0 has a turnover of \u20ac \u00a0 <\/span><b>5 trillion<\/b><span style=\"font-weight: 400;\"> euro; is<\/span><\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">the <\/span><b>Organized Crime<\/b><span style=\"font-weight: 400;\"> produces streams for\u00a0 <\/span><b>one trillion<\/b><span style=\"font-weight: 400;\"> euro.<\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">This modern and fruitful organization of the <\/span><b>industrialization<\/b><span style=\"font-weight: 400;\"> of recycling called <\/span><b>the modern money laundering industry<\/b><span style=\"font-weight: 400;\">, therefore has the &#8221; <\/span><i><span style=\"font-weight: 400;\">target to clean<\/span><\/i><span style=\"font-weight: 400;\"> &#8221; objective of about <\/span><b>16,000 billion euros<\/b><span style=\"font-weight: 400;\">, which is precisely the proceeds of crime in its various forms ( <\/span><i><span style=\"font-weight: 400;\">common crime, economic, fiscal and non and organized<\/span><\/i><span style=\"font-weight: 400;\"> ).<\/span><\/span><\/p>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">It makes us think how this recycling industry reaches a turnover of about <\/span><b><i>900 billion euros a year<\/i><\/b><span style=\"font-weight: 400;\">, about <\/span><b>5% of the proceeds to be cleaned<\/b><span style=\"font-weight: 400;\">, which is partly invested in the INNOVATION of recycling techniques.<\/span><\/span><\/p>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">Being able to count on these revenues attracts the attention of many and allows them to organize the most sophisticated techniques of \u201ccamouflage\u201d. That&#8217;s why laundering money from crime is a real <\/span><i><span style=\"font-weight: 400;\">business<\/span><\/i><span style=\"font-weight: 400;\"> in which real <\/span><b>professionals of laundering<\/b><span style=\"font-weight: 400;\"> operate.<\/span><\/span><\/p>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">This <\/span><b>modern and innovative organization<\/b><span style=\"font-weight: 400;\"> that relies on professionals, banks and financial intermediaries, acts by putting in place a real organized and industrialized process of money laundering, which modern doctrine divides into three phases: <\/span><i><span style=\"font-weight: 400;\">Placement<\/span><\/i><span style=\"font-weight: 400;\">; Stratification ( <\/span><i><span style=\"font-weight: 400;\">Layering<\/span><\/i><span style=\"font-weight: 400;\"> ); Integration ( <\/span><i><span style=\"font-weight: 400;\">Integration<\/span><\/i><span style=\"font-weight: 400;\"> ).<\/span><\/span><\/p>\n<h3><span style=\"color: #000000;\"><b>III. PLACEMENT ( <\/b><b><i>Placement<\/i><\/b><b> )<\/b><\/span><\/h3>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">The initial phase of money laundering is the place of large sums of cash into the financial system, causing it to transit activities &#8220;laundry&#8221;, which have ability to accept and justify so <\/span><b>unexpected<\/b><span style=\"font-weight: 400;\"> the <\/span><i><span style=\"font-weight: 400;\">cash<\/span><\/i><span style=\"font-weight: 400;\">, since they are businesses based on the amount and collection of their <\/span><b>sales and \/ or services<\/b><span style=\"font-weight: 400;\"> , largely <\/span><b>in cash<\/b><span style=\"font-weight: 400;\"> .<\/span><\/span><\/p>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">Restaurants, bars, nightclubs, vending machines, direct door-to-door sales and check cashing activities or the <\/span><i><span style=\"font-weight: 400;\">SMURFING<\/span><\/i><span style=\"font-weight: 400;\"> (2) business, i.e. money smuggling, are the main <\/span><i><span style=\"font-weight: 400;\">channel<\/span><\/i><span style=\"font-weight: 400;\"> and target for obtain the transfer of funds without arousing suspicion, and then use it in other techniques, such as <\/span><i><span style=\"font-weight: 400;\">LOAN BACK<\/span><\/i><span style=\"font-weight: 400;\"> (3), provided that you want to return the money within the economic or productive structure, otherwise the money is destined in one tax havens, with c <\/span><b>reaction from funds or front companies<\/b><span style=\"font-weight: 400;\">.<\/span><\/span><\/p>\n<p><span style=\"font-weight: 400; color: #000000;\">This placement phase is not always a necessary step, if the money to be laundered or hidden is already in the financial system.<\/span><\/p>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">In this case, the process begins with <\/span><b>layering<\/b><span style=\"font-weight: 400;\"> .<\/span><\/span><\/p>\n<h3><span style=\"color: #000000;\"><b>IV. <\/b><b>LAYERING<\/b><\/span><\/h3>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">It serves to <\/span><b>hide or disguise<\/b><span style=\"font-weight: 400;\"> the source of the money, and <\/span><b>confuse investigators<\/b><span style=\"font-weight: 400;\">, regardless of whether the origin of the money is criminal or the purpose is tax evasion, transactions can be justified in <\/span><b>seemingly legitimate business relationships<\/b><span style=\"font-weight: 400;\"> and can have solid accounting evidence with ample supporting documentation, which gives clear legitimacy to the transaction. The stratification occurs with transactions between foreign countries with the use of structures and numerous bank accounts. Stratification is the method used by the technology and digitization of payments which, in an automated and massive way, makes us <\/span><b>lose all traces of the genesis <\/b><span style=\"font-weight: 400;\">of hidden and criminal funds, this is now widespread in the <\/span><i><span style=\"font-weight: 400;\">crypto<\/span><\/i><span style=\"font-weight: 400;\"> world.<\/span><\/span><\/p>\n<h3><span style=\"color: #000000;\"><b>V. INTEGRATION\u00a0<\/b><\/span><\/h3>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">It is the phase of <\/span><b>reconversion<\/b><span style=\"font-weight: 400;\">, that is, changing the origin of dirty money or money from tax evasion. deposited and stratified in the hands of the criminal in a form that he can use without risk of confiscation and actions as well as an investigation by the various bodies responsible for investigation and control.<\/span><\/span><\/p>\n<p><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">For example, integration can take the form of <\/span><b>payment<\/b><span style=\"font-weight: 400;\"> (consultancy services, a real estate broker, an artist, an investment company, an event management company, an art management company, a risk capital\u2026) to a company or person with whom the offender appears to have no connection. The integration can also take the form of a <\/span><b>loan<\/b><span style=\"font-weight: 400;\">.<\/span><\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I. INTRODUCTION Within the context of international anti-money laundering action, it is essential to know and study the AML legislation,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":792,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,20],"tags":[12,57,79],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.13 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Industrialization of Money Laundering, A Billionaire Turnover - Finahukuk<\/title>\n<meta name=\"description\" content=\"In Turkey, a recent study by the FATF estimated that the turnover attributable to the criminal economy present in Turkey is approximately 7.4 billion euros per yea\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.finahukuk.com\/en\/2020\/11\/05\/the-industrialization-of-money-laundering-a-billionaire-turnover\/\" \/>\n<meta property=\"og:locale\" content=\"tr_TR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Industrialization of Money Laundering, A Billionaire Turnover - 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