Money Laundering and its Economic Impacts in the Context of the Fight Against Terrorism

Abstract

The sources of the process of “money laundering” and its influence on economic and law system of the country, the general sources of the capital obtained by criminal actions and the ways of its legalization are analyzed in the article. The rules of criminal capital in the Criminal Code of Lithuanian Republic or legalization of the capital, object, subject, objective and subjective aspects are reviewed. Having analyzed academic literature, also having used the personal and other specialists’ experience the concept of “money laundering” and its influence on the state economy are defined. International experience of the fight against “money laundering” is used in the article. The aim of the article is to study the conception of the process of “money laundering” on economic and juridical aspects. It is also important to envisage possible measures and methods which can help to fight with money laundering and disclose the connection between money laundering and financial support of terrorism. Besides, an assessment of the process of money laundering economically is offered in the article, and the general sources of illegal income are analyzed. It is pointed what influence is possible or takes place legalizing illegal money. Financial support of terrorism is one of the most important aims while using illegal money nowadays. Possible sources of financial support of terrorism and ways to conceal the real origin of illegal money, sources and organizers are found. Undoubtedly, the use of offshore companies is a concurrent of the process of money laundering. The bounds of possible amenability for money laundering are stated. To fight against financial support of terrorism Lithuanian Republic passed the law on the prevention of financial support of terrorism. The purpose of the law is to find out the remedies to prevent money laundering and (or) financial support of terrorism as well as institutions, which are responsible for these preventive measures realization. The law is passed with reference to European Union juridical acts and their ensured practice. Negative and positive aspects of the strategy of prevention of terrorism directed to fighting against terrorism are accentuated.