Money Laundering

• Author: Agron Beka
• Pages: 229-239

JURIDICA

229

Money Laundering

Agron BEKA1

Abstract: “Money laundering” is a widespread phenomenon of organized crime in contemporary

society, es pecially in countries that are in transition. This phenomenon includes various criminal

transactions and activities from which such money has been earned. In order to lose track of how initial

financial capital was created, they invest different fields, such as: construction, real estate turnover,

financial, banking, business, etc. In other words, with depositing and investing these funds in these

areas, this money are used as “laundered”, reflected as money allegedly earned by lawful activities. In

this way, companies are formed which use the “dirty” money as a cover for their business activities.

Keywords: money; circulation; “money laundering”; crime; criminality; real estate; bank; law etc.

1. Understanding the Term “Money Laundering”

Regarding the notion of “money laundering”, there are different definitions of th e

academic level by criminologists and so on.

The term “money laundering” is derived from the English word “Money

Laundering” and was used for the first time in the USA between the 1970s and 1980s

of the last century (Proda, 1998, p. 53).

“Money laundering” means the legalization of capital earned by criminal activities,

namely financial transactions in order to conceal the true origin of money and other

types of capital in the market (Teofilovic & Jelacic, 2006, p. 13).

“Money laundering” is a form of organized crime, widespread in c ontemporary

society, especially in countries that are still in the transition phase.

1 University of Mitrovica, Republic of Kosovo, Address: Filipa Višnjiča bb, 38220 Kosovska,

Mitrovica, Republic of Kosovo, Tel.: 028 422 340, Corresponding author: agron.beka@umib.net.

AUDJ, Vol. 15, No. 1/2019, pp. 229-239