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Give a title to the text.
Give a title to the text.
Money laundering
What is money laundering? Basing on the text, provide a definition of the term in your own words.
What is money laundering? Basing on the text, provide a definition of the term in your own words.
Money laundering is the process of transforming ill-gotten gains into usable assets.
Basing on the text, cite two factors of money laundering in Latin American and Caribbean region.
Basing on the text, cite two factors of money laundering in Latin American and Caribbean region.
Instability and a faltering economy.
Explain this sequence of the text in three lines maximum: 'larger countries with low risk can see more total money laundering than high-risk small islands'.
Explain this sequence of the text in three lines maximum: 'larger countries with low risk can see more total money laundering than high-risk small islands'.
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What obstacles do countries in Latin America and the Caribbean face?
What obstacles do countries in Latin America and the Caribbean face?
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The index measures the actual amount of money laundering in a given country.
The index measures the actual amount of money laundering in a given country.
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Why is Panama considered a money laundering hub?
Why is Panama considered a money laundering hub?
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What has often pressured small Caribbean island nations to improve their anti-money laundering standards?
What has often pressured small Caribbean island nations to improve their anti-money laundering standards?
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Which country was considered the fifth-highest risk for money laundering?
Which country was considered the fifth-highest risk for money laundering?
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In Ecuador, a recent wave of money laundering has accompanied a decrease in cocaine trafficking
In Ecuador, a recent wave of money laundering has accompanied a decrease in cocaine trafficking
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In what year did money laundering cases related to drug trafficking double in Uruguay?
In what year did money laundering cases related to drug trafficking double in Uruguay?
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An estimated $3.5 billion equivalent to about 75% of Barbados' total ______ was laundered through Ecuador's financial system in 2021.
An estimated $3.5 billion equivalent to about 75% of Barbados' total ______ was laundered through Ecuador's financial system in 2021.
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Flashcards
Money Laundering
Money Laundering
The process of transforming illegal gains into usable assets, appearing legitimate.
Ill-gotten Gains
Ill-gotten Gains
Profits obtained through illegal activities like crime.
Drug Trafficking
Drug Trafficking
Illegal trade of drugs, a major factor in money laundering.
Organized Crime
Organized Crime
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Latin America and the Caribbean
Latin America and the Caribbean
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High-Risk Islands
High-Risk Islands
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Low Risk Countries
Low Risk Countries
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Anti-Money Laundering Index
Anti-Money Laundering Index
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Economic Strength
Economic Strength
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Legal Loopholes
Legal Loopholes
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Weak Enforcement
Weak Enforcement
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Illicit Funds
Illicit Funds
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Transforming Gains
Transforming Gains
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Vulnerabilities in Finance
Vulnerabilities in Finance
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Perceived Risk
Perceived Risk
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Money Laundering Hub
Money Laundering Hub
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Total Money Laundering Activity
Total Money Laundering Activity
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Larger Economies
Larger Economies
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Illicit Trade
Illicit Trade
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Criminal Networks
Criminal Networks
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Study Notes
Reading Comprehension Test - Money Laundering in Latin America and the Caribbean
- Latin America and the Caribbean face significant obstacles in enforcing anti-money laundering laws, despite being above the world average in adopting these legal frameworks.
- The 2023 anti-money laundering index, produced annually by the Basel Institute on Governance, highlights how criminal economies in the region have transformed into a money laundering hub.
- The index ranks countries based on their vulnerability to money laundering, not the actual amount of money laundering occurring.
- Haiti, a poor performer in the index, is not a major money laundering hub, due to instability, a faltering economy, and weak currency.
- Criminals prefer to move funds to larger economies with strong currencies, like Panama - a known money laundering hub, as it aligns with international trade.
- The G7 and EU pressure Caribbean island nations to improve anti-money laundering standards.
- Many Caribbean island nations have a high risk of money laundering (St. Kitts and Nevis, the Bahamas, and Barbados).
- Larger countries with lower risk (e.g., Ecuador, with lower risk) may see more total money laundering than high-risk islands.
- Ecuador's recent wave of money laundering was equivalent to 75% of Barbados' total GDP due to cocaine trafficking.
- Money laundering cases related to drug trafficking have doubled in Uruguay between 2018 and 2022.
- Legal loopholes and limited law enforcement capabilities attract money launderers in Uruguay.
Money Laundering Definition
- Transforming ill-gotten gains into usable assets (criminal earnings to legitimate ones).
Factors of Money Laundering in the Region
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Presence of drug trafficking and organized crime.
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Legal loopholes.
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Limited law enforcement capabilities.
Summary of Text (3 lines max.)
- Latin American and Caribbean countries rank above average in adopting money laundering laws, yet criminal economies have transformed them into a money laundering hub.
- The actual amount of money laundering might differ greatly from rankings, impacted by factors like instability, weak currency etc. Large countries with lower risk of money laundering might experience higher total money laundering compared to small high-risk islands.
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Description
This quiz tests your understanding of the challenges and dynamics of money laundering in Latin America and the Caribbean. Based on the 2023 anti-money laundering index, explore how different countries are affected and the impact of international pressure on local standards. Sharpen your comprehension skills while diving into a critical global issue.
