Pros And Cons Of Money Laundering In Jamaica

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Running head: FINANCIAL MANAGEMENT 2 1 Money Laundering 6 Money Laundering in Jamaica Marvin Grant ID#20121489 Excelsior Community College According to ACCA’s Code of Ethics and Conduct, money laundering is the process by which criminals attempt to conceal the true origin and ownership of the proceeds of their criminal activity, allowing them to maintain control over the proceeds and, ultimately, providing a legitimate cover for their sources of income, or; a series of multi-specialized deals designed to disguise the source of financial assets so that these assets and funds can be used as a legitimate sources resulting from legitimate business operations (Agarawal and Agarawal, 2005). There are usually three stages in money…show more content…
An article from August 29, 2012, dubbed "The high cost of crime", by Camilo Thame, from the Jamaica Observer, has proposed that criminal activities may have wiped out as much as 90 per cent of the island’s potential economy, and has stifled any potential for growth during that period. Money Laundering is bad for an economy and countries in a whole. Some negative impacts of money laundering economic effect includes higher cost of doing business, withdrawal of international partnerships, and loss of foreign investment. This has been evident in recent time whereas, international banks have decided sever alliance with Caribbean banks because of rumors of money being laundered…show more content…
Money laundering has a tendency to discourage legitimate business enterprise, corrupt the financial systems and ultimately collapse the economy. The effect of anti-monetary legislation implementation on the financial performance of commercial banks in Jamaica is an interesting one. Anti-Money Laundering (AML) can be defined as an activity which prevents, or aims to prevent money laundering from happening. In a Gleaner article dated November 2013, Braford Henry concluded that bank reporting affects AML these has lead to increased transactional costs due to screening and the reporting frequency that the bank has instituted as well broadened the types of reports

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