Date Presented

Spring 3-2013

Document Type

Thesis

Degree Name

Bachelor of Science

Department

Economics

First Advisor

Dr. David Murphy

Second Advisor

Professor Mike Schnur

Third Advisor

Dr. Joe Turek

Abstract

Money laundering has developed over recent decades and has evolved into a worldwide phenomenon. Virtually every country in the world is affected by money laundering. The methodology of money laundering exists in every fraud scheme. It involves the concealed transfer of assets by masking them in the ordinary normalcy of financial transactions. Money laundering is a criminal enterprise, with the emphasis on the business aspect. The attraction of perpetrators into the money laundering business is profit with little perceived risks. This paper discusses money laundering, how to define it, its origins, the cycle, its effects, prevention methods, and what the United States currently has in place to help prevent and discover fraudulent transactions. Additionally, it discusses Hawalas, electronic payments, money laundering from an international perspective, how the Bank Secrecy Act evolved and the rise of the Patriot Act. Suspicious activity reports, Money Service Business (MSBs) and Currency Transaction Report (CTR) are also discussed.

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