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Chapter 14 MONEY AND THE BANKING SYSTEM1. Money is the set of assets in the economy that people regularly used to purchase goods and services from other people. Money has three functions in the economy:
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Money laundering refers to the process of making illegally-gained proceeds appear legal or 'clean'. It involves disguising the source of money, typically by transferring it through a complex sequence of banking transactions or commercial activities.
Financial institutions, including banks, money service businesses, casinos, and other entities that handle large amounts of cash, are required to file reports on suspicious transactions that may indicate money laundering or other financial crimes.
The process of filling out money laundering reports involves documenting suspicious transactions, providing details about the individuals or entities involved, and submitting the reports to the appropriate regulatory authorities.
The purpose of money laundering reports is to help detect and prevent financial crimes, such as terrorism financing, drug trafficking, and tax evasion. By identifying suspicious transactions, authorities can take action to disrupt criminal networks and protect the financial system.
Money laundering reports typically include details about the transaction, the individuals or entities involved, the source of funds, and any other relevant information that may help authorities investigate and combat financial crimes.
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