Money laundering prevention

In this Master‘s thesis, based on the Council of Europe, the European Union, Lithuania‘s national legislation, scientific literature and works of the international organizations, the concept and the process, methods of money laundering, ways to create an effective money laundering supervision system in the state and the development of legal regulation is examined. In the first chapter, the concept and the process, methods of money laundering, the negative impact on the state economy and institutions is examined. In this chapter, based on the Financial Action Task Force (FATF) works, some specific methods of money laundering were examined in detail: trade-based money laundering, money laundering related with gold, diamonds, new payment methods, casinos and gambling sector. This chapter reveals how money laundering is carried out in these specific areas and how it can be identified and prevented by collaborating with the authorities. In the second chapter, the creation of an effective anti-money laundering supervision system in the state is examined by indicating the main tasks for the states, obligations to their responsible authorities and by providing principles of an effective anti-money laundering supervision system. This chapter also analyzes the existing organizational approaches of effective anti-money laundering supervision and which approach has been chosen by Lithuania and other countries of the world. In the third chapter, the development of the Council of Europe, the European Union and the Lithuanian national legislation in the field of money laundering prevention is examined. As law offenders discover new ways to launder money and due to the technology advancements, the legal framework also required to be improved in order to ensure effective prevention of money laundering