Money laundering in Pakistan

Money laundering is defined as the activity through which the criminals converted the true source and ownership of such illegitimate money into legitimate money. Through which money can lose its original identity forever. Interpol definition adopted by UNO General assembly 1995 states “Any act or attempted act to conceal or disguise the identity of illegally obtained proceeds so that they appear to have originated from legitimated sources”

Illegitimate sources may include the illegal arms sales, smuggling and other crimes such as drug trafficking and prostitution can produce the huge quantity of earnings. Frauds, insider trading, bribery and other frauds in terms of offering the fake scheme they can also generate the huge profits. When such type of activities generates the profit the persons or people involve must find the different ways to organize/control these funds by breaking these funds into many small pieces and then invested in some legitimate source to conceal its original identity.