MONEY LAUNDERING AND WAYS OF SUPPRESSING IT IN THE PUBLIC SECTOR

Abstract

Money laundering stands for every activity, or attempt of an
activity, that covers illegal origins of means in order to present them as those
originated form legitimate sources. Such activities are mostly conducted by
the entities whose activities are performed within grey economy area and
organized crime. The aim of money laundering is processing of illegally
obtained money into legitimate money, namely, money obtained by legitimate
business activities or transactions. Money laundering and corruption are
particularly present in the countries in transition. The main aim of this work
is presenting of methods of fighting against money laundering in the public
sector. Globalization and global transition of all the societies in the world make
preconditions for money laundering and corruption practice throughout
the world. This is related not only to the countries being in transition (i.e.
the former socialistic countries), so it is possible to make conclusion that
money laundering and corruption are global issues, particularly in the world
economic crisis conditions.