Editing Money laundering (section)

====Reverse money laundering====
{{see also|Hawala and crime}}

Reverse money laundering is a process that disguises a legitimate source of funds that are to be used for illegal purposes.<ref name="REVERSE LAUNDERING">{{Cite web |last=International Federation of Accountants |title=Anti-Money Laundering |url=http://www.ifac.org/sites/default/files/publications/files/anti-money-laundering-2n.pdf |access-date=27 March 2014 |archive-date=28 March 2014 |archive-url=https://web.archive.org/web/20140328133527/http://www.ifac.org/sites/default/files/publications/files/anti-money-laundering-2n.pdf |url-status=dead }}</ref> It is usually perpetrated for the purpose of financing terrorism<ref>{{Cite journal |last=Cassella |first=S.D. |year=2003 |title=Reverse money laundering |journal=Journal of Money Laundering Control |volume=7 |issue=1 |pages=92–94 |doi=10.1108/13685200410809814}}</ref> but can be also used by criminal organizations that have invested in legal businesses and would like to withdraw legitimate funds from official circulation. Unaccounted cash received via disguising financial transactions is not included in official financial reporting and could be used to evade taxes, hand in bribes and pay "under-the-table" salaries.<ref>{{Cite journal |last=Zabyelina |first=Yuliya |year=2015 |title=Reverse money laundering in Russia: Clean cash for dirty ends |journal=Journal of Money Laundering Control |volume=18 |issue=2 |pages=202–221 |doi=10.1108/JMLC-10-2014-0039}}</ref> For example, in an [[affidavit]] filed on 24 March 2014 in [[United States District Court for the Northern District of California|United States District Court, Northern California]], San Francisco Division, FBI special agent Emmanuel V. Pascua alleged that several people associated with the [[Chee Kung Tong]] organization, and California State Senator [[Leland Yee]], engaged in reverse money laundering activities.

The problem of such fraudulent encashment practices (''obnalichka'' in Russian) has become acute in Russia and other countries of the former Soviet Union. The Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG) reported that the Russian Federation, Ukraine, Turkey, Serbia, Kyrgyzstan, Uzbekistan, Armenia and Kazakhstan have encountered a substantial shrinkage of tax base and shifting money supply balance in favor of cash. These processes have complicated the planning and management of the economy and contributed to the growth of the [[shadow economy]].<ref>EAG. "[http://eurasiangroup.org/WGTYP_2012_10_eng.pdf Money laundering and terrorist financing with use of physical cash and bearer instruments] {{Webarchive|url=https://web.archive.org/web/20171013064519/http://eurasiangroup.org/WGTYP_2012_10_eng.pdf |date=13 October 2017 }}", 17th Plenary Meeting of the Eurasian Group on Combating Money Laundering and Financing of Terrorism, 28 December 2012, New Delhi.</ref>