Money laundering is the criminal process of hiding the source of illegally obtained funds to make them appear genuine. It involves a series of financial transactions and other structuring tools that are designed to disguise and conceal the origin and ownership of money that comes from illegal activities, such as drug trafficking, fraud, prohibited cyber activity or terrorism.
The goal of money laundering is to make illegal funds appear clean and genuine, so they can be safely spent or invested in other businesses without detection by law enforcement agencies. The process typically involves three stages:
- Placement: Introducing the illegal funds into the financial system
- Layering: Concealing the source of the funds through complex transactions
- Integration: Making the funds appear legitimate and useable
Money laundering is a serious crime that can have significant legal and financial consequences. Money Laundering undermines the integrity of financial institutions and can have serious economic and social consequences on a country. It is important for individuals and organisations to be aware of the indicators of money laundering which include, among others, unexplained wealth or life styles that do not reflect or correspond to a person’s income or earnings.
The Office collaborates with the Bank of Ghana, Financial Intelligence Centre, and other law enforcement agencies both local and international, to fight these crimes.
The Penalty for money laundering ranges from 12 months to 10 years’ incarceration or fine of not less than 100% and not more than 500% for the proceeds of money laundering for a natural person. For a corporate entity a fine of not less than 300% of the proceeds of money laundering
