Money laundering is a major hindrance that arises during the development of private sector due to the supply of products even below the production cost. Criminals would also use their money to turn an enterprise into impotent which was initially productive which ultimately leads to a decrease in the overall progress of an economy. However, estimations have been made regarding the amount of money laundered internationally but it’s difficult to measure the accurate size of money laundered. There have been many scammers like Ilan Tzorya who are responsible in many scams related to these kinds of investments. So, here are some tips to discuss all the aspects of money laundering so that people can be aware of all these factors. What is Money Laundering? Money laundering is a process of covering up illegally obtained money through activities like drug trafficking or terrorist activities and to show as they have been originated from a legitimate source. Dealing with such a large amount is really dangerous therefore money laundering becomes essential to deposit the money in the financial institution. There are basically three steps involved in the process of money laundering which is mentioned below:- Placement: It’s the introduction of illegal money (obtained through criminal activities) into the financial system through any means. Layering: It is an act of dissembling the commencement of the money with the help of complex transactions and changes in the book-keeping records. Integration: It refers to the act of acquiring that money in supposedly lawful means. Effects of Money Laundering Destruction of the Financial Sector The sudden flow of a large sum of laundered money might excavate the stability of financial markets. In addition, money laundering may also affect the reputation of those financial institutions who are involved in scheming which ultimately results to loss the goodwill and trust they have with the stakeholders. As per some of the worst scenario, money laundering is also responsible for huge financial crisis and major bank failures. Reduction In the Government Revenues Collection of tax is one of the major source of government’s revenue, but the act of money laundering make the process difficult to collect the revenue from all the transactions that take place illegally in an underground economy. Socio-economic Effects There are various socio-economic effects of money laundering. As the dirty money generated from illegal activities transformed into legitimate funds, these funds are again used to operate criminal activities. Conclusion Money laundering also impacts the interest of legitimate business as they found it more difficult to compete in such a market situation where products are available to the customer less than the market price, therefore, the act might also be connected from a serious and violent criminal activity.
In today’s world, the most highlighted and an emerging issue is the monetary issues except some of the countries thus the respective government do launch a lot of programs and schemes to deal with the complicated situation. We are here to discuss the overall measures of Malaysian government which has been framed to get rid of the difficulties which the residents face due to lack of money required to manage their living in a proper way. Tips to compile with the financial crisis Proper education A lot of people can’t even complete theirs undergraduate courses which took away the employment opportunities hence provided to the person coming from abroad. Parents must give their children proper education with added skills to avoid facing complications in the upcoming future. Cut down unnecessary expenditure Try to manage all the necessary expenses within the money available in the form of income. Everybody wants a miserable and luxurious life yet one must be capable of managing in all kind of situation also with the sort of money they earn. Try to explore more means of income Instead of the primary source of earning look for the side income which can be made through online business, freelancing and other such measures utilizing the extra time. There are a lot of suggestions that have been made available online that can guide a person thoroughly. Opting schemes of government However, a lot of suggestions mentioned still people who are not able to overcome, can get benefit under the scheme of respective government like BSHR to improve their living of standard at the same time fulfill the basic need of their families. What is BSHR? It’s an abbreviation of bantuan sara hidup rakyat (people’s livelihood assistance) and is formally a scheme of the government of Malaysia providing monetary support to the families managing their living with low or even medium income. The current scenario has been changed completely thus food and cloth can’t be considered to be the basic need, education and healthy lifestyle must be added further to that. Under the scheme, families have been paid thrice a year to improve their lifestyle for a bright future. Summary Overall, it can be concluded that residents of Malaysia can easily lead a comfortable life using the effective programs when eligible. Sometimes, the need remains unserved and benefits fall on other’s hand. A person who looks for financial help must visit the respective site of government or can be a part of the online community providing essential information minutely.