Investment Law - Money Laundering and Terrorist Finance - Essay Example

50)2. We can therefore describe money laundering as a process whereby the proceeds from activities of crime are covered to conceal their source or origin which is illicit. Money laundering may entail three distinct reas alternative actus (Graham, 2007, p. 51)3. These includes the: one, the transfer or conversion of property bearing in mind that such property or asset a criminal proceeds, two, the concealment or disguise of the source, nature, disposition, location, rights ownership or the movement with regards to the property bearing in mind that such property is a criminal proceeds and three, the property possession, the acquisition or use having in mind that the reception time that the property is of criminal proceeds (Graham, 2007, p. 51)4. On the other hand, financial terrorism involves collection, provision or solicitation of funds with an objective that the funds may be utilized to enhance terrorist organizations or acts.

These funds may come from either illicit or legal sources. To define more precisely, a person is said to commit of terrorist financing if the person by any way indirectly or directly, willfully or unlawfully collects or provides funds with the aim that the money or the funds be used or the person has the knowledge that the money will be used in part or full support of a criminal offense with the convectional offense (Graham, 2007, p. 51)1. The major objective of an entities or individual engaging in terrorist financing is thus not necessarily hide the money but both nature and financing of the activity of financing (Graham, 2007, p. 51)2. The risk that may be associated with money laundering is that, it damages financial sectors which the key institutions for economic growth of a country.

Money laundering and financial terrorism reduces the productivity with a country since most of resources are diverted to criminal activities encouraging practices of corruption (Graham, 2007, p.