Abstract My research paper is about money laundering in Brazil using the Operação Lava Jato as an example, which is one of the biggest scandals of money laundering in the country. This operation initially started as money laundering investigation, soon enough it unfolds allegations of corruption at the state-controlled oil company Petróleo Brasileiro. My paper will be fully focus on the explanation of why these powerful executives and politicians engage in such crime by using Sutherland’s theory of Differential Association, casual factors, causes of the crime and as well the limitations of his theory when it comes to money laundering particular happening on this case in Brazil.
Introduction
Money Laundering has been the main key …show more content…
As a result, the Government of Brazil has a general Anti Money Laundering (AML) regulatory system in place. Brazilian authorities record that the major sources of illegal proceeds are crimes against the financial system such as fraud and embezzlement, drug trafficking, and tax evasion. Money laundering in Brazil is most commonly associated with domestic crime, including the circulation of contraband goods and corruption, narcotics trafficking and organized crime, which generates funds that may be laundered through the banking system, real estate investment or financial asset markets like Operação Lava Jato. Basically, inflated construction rates were added in these contracts in order to receive and share the money from these overpriced contracts among the members of this …show more content…
Brazil’s weak border security makes the country vulnerable to smuggling of goods into as well outside of the country. Also, Brazil lacks to maintain the standards of compliance to FATF when it comes to put the work into action. According to the U.S Department of State, Brazil does not maintain comprehensive statistics on money laundering prosecutions and convictions. Only combined figures are available for STRs/CTRs. As long as these reports are aggregated, it may be difficult to determine patterns of STR submission by volume, type of filer, or type of violation. Between January and October 2013, 1,084,153 STRs/CTRs were filed. So based on this information I concluded that it is hard to tell whether money laundering in Brazil has decreased or increased because of the lack of database keeping of convictions and arrests of this particular crime.
Differential Association theory by Sutherland After the information, we could say that money laundering is a crime that can be explained through Sutherland’s theory of Differential Association. This type crime falls in in the Sutherland’s theory because it takes the learning process with the help of their associates to commit the criminal act. So this theory can be summarized in nine crucial key factors.
1. Criminal Behavior is learned.
2. Criminal Behavior is learned in interaction with other persons in a process of
Introduction
Money Laundering has been the main key …show more content…
As a result, the Government of Brazil has a general Anti Money Laundering (AML) regulatory system in place. Brazilian authorities record that the major sources of illegal proceeds are crimes against the financial system such as fraud and embezzlement, drug trafficking, and tax evasion. Money laundering in Brazil is most commonly associated with domestic crime, including the circulation of contraband goods and corruption, narcotics trafficking and organized crime, which generates funds that may be laundered through the banking system, real estate investment or financial asset markets like Operação Lava Jato. Basically, inflated construction rates were added in these contracts in order to receive and share the money from these overpriced contracts among the members of this …show more content…
Brazil’s weak border security makes the country vulnerable to smuggling of goods into as well outside of the country. Also, Brazil lacks to maintain the standards of compliance to FATF when it comes to put the work into action. According to the U.S Department of State, Brazil does not maintain comprehensive statistics on money laundering prosecutions and convictions. Only combined figures are available for STRs/CTRs. As long as these reports are aggregated, it may be difficult to determine patterns of STR submission by volume, type of filer, or type of violation. Between January and October 2013, 1,084,153 STRs/CTRs were filed. So based on this information I concluded that it is hard to tell whether money laundering in Brazil has decreased or increased because of the lack of database keeping of convictions and arrests of this particular crime.
Differential Association theory by Sutherland After the information, we could say that money laundering is a crime that can be explained through Sutherland’s theory of Differential Association. This type crime falls in in the Sutherland’s theory because it takes the learning process with the help of their associates to commit the criminal act. So this theory can be summarized in nine crucial key factors.
1. Criminal Behavior is learned.
2. Criminal Behavior is learned in interaction with other persons in a process of