In Jeddah city of Saudi Arabia, such similar money laundering business took place which was caught by the Police and a strict action was taken immediately. A Bangladeshi man working in the Kingdom for few years has been put in lockup for 8 months under this act. He was ordered this punishment by the Criminal Court. A penalty of SR 3,000 and 50 lashes are also to be given by him at four different times for his money laundering operations. The guilty man had transferred almost 4 million Saudi Riyals from his personal bank account before he was arrested. During the investigation by the section of monetary inquiry, it was revealed that he was engaged in transactions of a huge amount of money for a Saudi. In return, he was paid SR 10 and a cell phone card every time by a young Saudi man.[irp]
The Police force revealed that the amount moved to the Saudi’s account by this Bangladeshi was done illegally through wrong ways without informing the main sources. The transactions were done between April 13, 2014, and April 13, 2015, amounting to a total 3,943,378 Saudi Riyals. The Bangladeshi criminal said that he did this as an order from his boss (Saudi man) at the corporation where he worked previously, to move the money to firms and people in some countries as well as in the Gulf. He did not know any background about this movement of money or the plan in which he was involved in.
According to a daily newspaper, the Saudi suspect, in his thirties, was arrested on his way back from a foreign tour, carrying around SR 2 billion himself. Investigations revealed that he had used several of his staff members to put a large portion of his cash in a local bank and that the bank reported the matter to the high powers. However, the suspect disagreed to the charges and not accepted the money that he had been moving out of the authorized commercial actions for ten years. He added that he had businesses in the UAE, China, and India.
Money laundering is a procedure of converting the huge illegal money made through illegal sources, such as drug dealing or terrorist activities, into a legal and right money. There are three steps in the process of money laundering.
- Placement, which is the act of obtaining wrong money (money through unlawful, illegal means) into the monetary system in some way.
- Layering is the act of hiding the origin of that illegal money through a chain of multiple and complex transactions.
- This refers to the act of buying that money in supposedly legal means.[irp]
Smurfing is also an ordinary type of money-laundering where an individual breaks up large parts of money and saves them for a comprehensive phase of time in a bank, or purely moves large amounts of cash illegally to another country to save them in offshore accounts where money laundering enforcement is less severe.
Source: Arab News