Money laundering involves processing
or dealing with the proceeds of criminal activities in order to conceal or
disguise their origin. It has also been defined as the concealment of
unlawfully acquired assets to make them appear to be lawfully acquired, and in
dudes both the effort and process involved in the concealment.
The Money Laundry Act, 2003[22] does not define the meaning of the
term money laundering. However, section 14 which provides for the offence of
money laundering gives us a clue as to the meaning. It provides thus.
(1) A person who (a) converts or transfers
resources or property derived directly or indirectly from illicit traffic in narcotic
drugs or psychotropic substances or any illegal act, with the aim of either
concealing or disguising the illicit origin of the resources or property, or
aiding any person involved in the illicit traffic in narcotic drugs or
psychotropic substances or any other crime or illegal act to evade the legal
consequences of his action; or
(b) Collaborates in concealing or disguising
the genuine nature, origin, location disposition, movement or ownership of the
resources, property or rights thereto derived directly or indirectly from
illicit traffic in narcotic drugs or psychotropic substances or any other crime
or illegal act, commits an offence under this section.
The offence committed under the
above section is known as money laundering. The definition of money laundering
given by the Act is not exhaustive and makes provision for money laundering via
the internet. Thus there exists a gap in the Act for a proper definition that
would cover money laundering through the internet.
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