Money Laundering Laws and Their Benefits Proposal
The world market becomes more transparent as international organizations introduce new laws and regulations to comb money laundering and resist tax evasion. The legal maintenance of counteraction to the legalization of criminal incomes is carried out by means of a system of laws and regulations, controlling financial, bank, and customs relations and establishing the order of licensing and registration of companies for 1.
In plenty of countries, specific laws act as a framework for legal measures to combat money laundering supporting international prospects. This paper proposes the importance of the study of in the struggle against this worldwide menace in the UAE. The research will be conducted in terms of the economic growth framework, which refers to increased economic capacity. In particular, it is expected to explore gross national product (GNP) and gross domestic product (GDP) concerning the analysis of money laundering.
It is suggested that the major benefit of in the UAE is the provision of additional resources to support the countrys economy. The review of the specialized economic analysis will provide a basis for comparing the UAE and other countries and the subsequent conclusions and recommendations.
Definition of Major Concepts
Money laundering refers to the concealment of the factual source of income when real transactions are replaced with fictitious ones, and documents may be falsified or used by the third parties2. For money laundering, criminals traditionally utilize offshore banks, the banking systems of which ensure anonymity and confidentiality of the beneficiaries, as stated by Kumar3. Among the most prominent and valuable activities of anti-money laundering (AML), there are the Organization for Economic Co-operation and Development (OECD) initiatives, the European Union (EU) directive, and the Foreign Account Tax Compliance Act (FATCA)4. The UAEs core financial regulator regarding money laundering is the Anti-Money Laundering and Suspicious Cases Unit (AMLSCU).
In the international law, the detailed definition of money laundering, or legalization, of proceeds from criminal activity is given in the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, which had a significant influence on the development of the relevant legislation in various countries5. The above document recognized money laundering received from illicit drug trafficking as a crime. Simultaneously, the development of organized crime led to an increase in the incomes of criminal organizations obtained from other spheres of illegal activity, including the slave trade, prostitution, human organ trafficking, etc.
The fight against money laundering is global in nature and is coordinated at the level of both intergovernmental and local organizations. Cox considers that ensuring the adherence to laws and regulations, they monitor the activities of the participating countries in the above area, collect and systematize useful information, and participate in specific national projects in this field.6As noted by Kumar (2012), a diversion of resources to less productive areas of the economy which in turn depresses economic growth