Money laundering

Money laundering

Money laundering refers to the cycle in which money, which is obtained mainly through illicit and illegal means, enters the formal cycle of the economy and thus gives formal nature to these currencies. Examples of such activities are revenues from drug sales, smuggling, and underground businesses. Unhealthy is called money laundering. Money laundering is an illegal activity in which the proceeds of illegal activities are legitimized. In other words, the dirty money resulting from wrongdoing becomes seemingly clean money and is replaced in the body of the economy. Money laundering is a minor offense and always precedes the main crime, and in the absence of the main crime, the crime of money laundering is also eliminated.

The material element of money laundering in Iranian law

According to Article 2 of the Anti-Money Laundering Law of Iran, the crime of money laundering is:

1- The acquisition, possession, maintenance or use of proceeds of illicit activities knowing that it is directly or indirectly the result of a crime;

2- Conversion, exchange, or transfer of income in order to conceal its illegal origin knowing that it is directly or indirectly resulting from the commission of the crime or assisting the perpetrator in such a way that he is not subject to the legal effects and consequences of the crime;

3- Concealment or concealment of the true nature, origin, source, location, transfer, transfer, or ownership of proceeds directly or indirectly obtained as a result of a crime.

This is a common and logical way for criminals to profit from illegal activities. Criminals engage in a wide range of immoral and illegal acts, such as using state-owned companies’ rents in Iran and eliminating the source of money, as well as drug trafficking, fraud, confiscated wealth, hostage-taking, gambling, donating money to terrorist organizations and even financial fraud on the Internet or other media. They make huge profits.

If you have any questions about money laundering and related provisions, or need guidance in enforcing a will or its provisions, our experienced counsel and lawyers at the Asia Lawyers Group will answer your questions.