Money Laundering Research Paper

Better Essays
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

Related Documents

  • Decent Essays

    Drug Trafficking In Mexico

    • 1460 Words
    • 6 Pages

    Bill McCollum in the book Threat Posed by the Convergence of Organized Crime, Drug Trafficking, and Terrorism described how drug cartels were engaged in corruption of U.S. law government officials as well as the Mexican police (McCollum, 2002). According to the Cooperative Mexican-U.S. Antinarcotics Efforts by Sidney Weintraub corruption through kickbacks and payoffs involving government contracts, especially for infrastructure on the top, emerged into petty corruption of police at the local level (Wood, 2010). Although Stephanie Hanson’s view from the Council of Foreign Relations stated that some analysts say that deploying the army to tackle drug violence has made it vulnerable to the same corruption affecting the police (Hanson, 2008). Which in turn would affect the Sovereignty of Mexico immensely as the military is one of the two most respected institutions in Latin America, corruption of this would create unstable authority and lack of trust in the justice system. In the Council of Foreign Relations report by Brianna Lee which discussed Mexico’s weak judicial and police institutions, as well as proximity to the world 's largest consumer economy, have made Mexico the hub of one of the world 's most sophisticated drug networks (Lee, 2014).…

    • 1460 Words
    • 6 Pages
    Decent Essays
  • Decent Essays

    Drug Trade In Colombia

    • 1374 Words
    • 6 Pages

    Their borders are virtually unguarded as many drugs pass through undetected. In Brazil there is a large market for cocaine and crack consumptions. The problem in Brazil is mirroring the crack crisis that took over the United States in the 1980’s when the drug essentially fueled the violence that was occurring in these cities. With Colombia decreasing the amount of cocaine they are producing, there is hope for an improvement of security in Central and South American countries. The Brazilians wanted to treat the drug problem as a national health problem, as they eventually created…

    • 1374 Words
    • 6 Pages
    Decent Essays
  • Decent Essays

    Causes Of Youth Gangs

    • 2233 Words
    • 9 Pages

    A person is exposed to these behaviors to an extent that they began to mimic and model them. According to this theory there are two components in which people go by to express this theory. First, the content of what is learned includes specific techniques for committing crime and the process by which the learning takes place involves associations with other people in intimate personal groups (Bernard, Snipes, & Gerould, 2010). Therefore, these components are important in the learning process in the social learning theory because without them people wouldn’t be involved in any delinquent…

    • 2233 Words
    • 9 Pages
    Decent Essays
  • Decent Essays

    Nanking Massacre Theory

    • 1758 Words
    • 8 Pages

    Criminal people or activities are motivated by the need for resources and social gain. This are the specific motives and direction that people learn from the association with criminals which varies in duration, frequency, intensity and priority. The amount of time and at what point people are exposed to a particular definition are crucial for explaining criminal activities. Differential Association Theory explain more than just crime committed by lower class person and more than just juvenile delinquency, since it is understood to be learned behaviour and applies to corporate, white-collar and organized…

    • 1758 Words
    • 8 Pages
    Decent Essays
  • Decent Essays

    The differences between the theories are that Social learning discusses that people learn how to commit a crime. It suggests that people learn the criminal behavior the same way as they learn conventional behavior. Social control theory is about the failure of society to control criminal behaviors. Social labeling theory maintains the negative labels that make them think who they are when they are really not who people tend to label them as. The similarities of the three are that they all have to do with crime and how it is…

    • 763 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    According to the Journal of Financial Crime by author Elizabeth J.A. Rodgers publication on “Conflict Diamonds” describes the connection of how RUF rebels violent acts and war crimes on the natives of Liberia were because the diamonds industries distribution of conflict diamonds. Rodgers describes corruption due to economic trade between native lands as she…

    • 1825 Words
    • 8 Pages
    Decent Essays
  • Decent Essays

    According to James Petras, U.S. banks have established an “elaborate set of policies for transferring illicit funds to the United States and “laundering” those funds by investing them in legitimate businesses or U.S. government bonds.” James Petras states that the current global financial system “is a major factor in their (developing country’s) economic instability and mass impoverishment.” A 2005 UK Department for International Development’s (DFID) Political Economy Analysis (PEA) report recognized elite corruption, resources depredation and power capture as factors inhibiting growth and change in the developing world . As well, a 2011 UN report indicates that such systems “provides perverse…

    • 1740 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    Drug cartels play a huge role because they threaten people in power by threatening to kill the individual or their family or to further their agenda. Likewise, “La mordida” does not only apply to police officers, but it applies to politicians, army officials, and individuals in power. Much of these bribes are from drug cartels. In Stephen Morris scholarly article, “Corruption, Drug Trafficking, and Violence in Mexico.” Morris states that there is a connection between corruption and organized crime. He shines the light on the connection between corruption and crime when he states, “To reiterate, the prevailing patterns of corruption associated with drug trafficking and organized crime not only facilitate the illicit businesses of these organizations, but also effectively handicap official state efforts to control or contain them” (Morris 34).…

    • 2033 Words
    • 9 Pages
    Decent Essays
  • Decent Essays

    In 2012, the New York Times published an article reporting extensively on the rampant corruption in the business practices of Wal-Mart’s Mexican branch, Wal-Mart de Mexico. The article reported that the company paid more than $24 million in order to obtain things such as building permits and beneficial environmental impact reports as a way of facilitating unprecedented large growth (Barstow 2012). Due to these practices, Wal-Mart has come under scrutiny of the United States’ Foreign Corrupt Practices Act (FCPA), which seeks to punish American companies that participate in illegal practices abroad. This article also lead to a rise in scholarship and articles about the inherent corruption in the Mexican business culture as well as general public…

    • 1282 Words
    • 6 Pages
    Decent Essays
  • Decent Essays

    In a way choice comes before learning and learning comes before choice. However in this case in order to make a choice you have to learn how to make one. Learning theory relates to crime including computer crime in general because they learn the attitude towards gaining the skills and rationalize the necessity to commit the offense (Eric J. Fritsch). The offender puts their skills to the test by engaging in unlawful acts. According to social learning theory, people engage in crime because of their association with others who engage in crime.…

    • 1126 Words
    • 5 Pages
    Decent Essays

Related Topics