A country that does not have strong predicate offenses and is lax in prosecuting AML cases could suffer which social/economic consequence?

The correct answer is C. Increased organized crime and corruption. Predicate offenses are the criminal activities that generate the proceeds that are later laundered through money laundering schemes. A country that does not have strong predicate offenses and is lax in prosecuting AML cases could suffer from increased organized crime and…

Risks and Methods of Money Laundering and Terrorist Financing

Question

Options

AUS sanctions
BLoss of tax revenue
CIncreased organized crime and corruption
DReputation risk for the port

How the community answered

(38 responses)

A
8% (3)
B
5% (2)
C
84% (32)
D
3% (1)

Explanation

Predicate offenses are the criminal activities that generate the proceeds that are later laundered through money laundering schemes. A country that does not have strong predicate offenses and is lax in prosecuting AML cases could suffer from increased organized crime and corruption, as criminals would have more opportunities and incentives to engage in illicit activities and evade detection and punishment. Organized crime and corruption can have serious social and economic consequences for a country, such as undermining the rule of law, eroding public trust, threatening national security, harming human rights, reducing economic growth, and distorting market

Topics

#predicate offenses#organized crime#social impact#economic consequences

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