Preventing the Organized Crime by Looking at Money Laundering

Money laundering is the other side of crime to earn a profit. It is a three-step process whereby the first step is to cut off any direct link between the proceeds (money) from its illegal source, the second step is to hide the rejection of property by performing multiple transactions (both formal and hypothetical), and the third step of the process is bringing a legal appearance to the profit of a crime. Hence, money laundering is a loose link between informal and illegal economics with the formal and legal one. However, in view of the harmful effects of this process, several initiatives have been taken to counter money laundering internationally, but in terms of the obligations of the government of Iran, the convention of United Nations against transnational organized crime, which was held in Palermo in 2000, and FATF's forty principles and UN Security Council Resolution 1373 are of paramount importance. Money laundering is a process in which illegal income is legalized. The existence of defects in banking, foreign exchange, customs, tax, statistical, and other systems of country has also resulted in the need to revise and update policies to combat this phenomenon. Also, to prevent and combat money laundering, the regulatory and supervisory system should be designed to guarantee the customer identification processes, information records, suspicious transaction reports by financial institutions, and their efforts to prevent the use of offenders from financial channels.