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Preventing Money Laundering and Terrorist Financing

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Chapter 1: Introduction

Money laundering is a serious threat to the financial system, with significant social, economic, and political costs. The techniques used to launder money are essentially the same as those used to conceal the sources of, and uses for, terrorist financing.

Key Points:

• Money laundering disguises the origin of wealth, making it appear legitimate.
• Terrorist financing involves providing or collecting funds for illicit activities.

Chapter 1: Key Definitions

Definitions:

• Money Laundering: The process of concealing the source of wealth to make it appear legitimate.
• Terrorist Financing: Providing or collecting funds with the intention of using them for terrorist activities.

Chapter 1: The Link Between Money Laundering and Terrorist Financing

The techniques used to launder money are essentially the same as those used to conceal the sources of, and uses for, terrorist financing. Funds used to support terrorism may originate from legitimate sources, criminal activities, or both.

Key Points:

• Techniques used for money laundering and terrorist financing are similar.
• Terrorist financing funds can come from various sources.

Chapter 2: International Initiatives

This chapter discusses international initiatives to prevent money laundering and terrorist financing. However, the text provided only includes a brief introduction to this topic.

Future Developments:

• This section will be updated with information on international initiatives.

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