KoFIU

What is Money Laundering?

It is an illegal process of disguising the criminal source of property.

Money Laundering (ML) refers to an activity where an individual or entity transforms their criminal proceeds into something legitimate, or conceals, disguises, converts, or transfers their ill-gained assets to avoid criminal consequences.

Why is Money Laundering a Problem?

Money laundering is committed within the financial transaction related to illegal activities, such as narcotic crime, organized crime, smuggling, slush fund creation, etc. As criminal proceeds are crucial means of survival for some criminal groups, they conceal the genuine source of money as if it is derived from legitimate activity.