Presentation on theme: "Money laundering Why we study money laundering: In the last years it has become very important for several reasons. First, the use of new technologies,"— Presentation transcript:
Money laundering Why we study money laundering: In the last years it has become very important for several reasons. First, the use of new technologies, for instance, the use of Internet or the on-line bank for committing this type of crimes; secondly, the tax haven has been very important in the growth of money laundering, thirdly the international character of the financial markets nowadays allows the money launderer to commit this type of crimes in other countries, so it is very difficult to arrest them and mainly, that money laundering is a crime that do not have a uniformity in his concept. Moreover, money launderer can break the principles under the tax lax (article 31 spanish Constitution: Spanish muss contribute to sustain public expenditure according to their economic capacity, through a fair tax system based on the principles of equality and progressiveness that in no case shall be confiscatory scope). What is money laundering? Money laundering is the process by which large amounts of illegally obtained money (from drug trafficking, terrorist activity or other crimes, tax evasion….) is given the appearance of having originated from a legitimate source. Concept.- Legal concept: There is no uniformity in the concept of money laundering given by the different legal systems: -Problems when the process of money laundering is made in different countries. -There is no International Penal Law -Different concept in punitive law and in preventive law Doctrine concept: black money (not declare to public funds) and grey money (money that comes from crimes). Moeny laundering in Spanish taxes Money laundering in Spanish taxes -income tax: The concept of income in this tax is not so open as in corporate tax. There relation between the profit not justified and the black money and grey money in the article 39: Shall be considered profits not justified, goods and rights whose possession or acquisition statement does not match with the income declared by the tax payer and the inclusion of debt absent any declaration by this tax or register in the books. -corporate tax: increase of wealth not justified. In the spanish corporate tax, the concept of income is open. In the article 4 of the corporate tax is said that the taxable event is the collection of income by the taxpayer, whatever is their source or origin. So the concept is so open that profits that come from money laundering in some cases could have place here. Covadonga Mallada University of Oviedo Preventive legislation in Europe and in Spain In Europe, the most recent is the Directive 2005/60/EC. In Spanish Law: Law 19/1993 of 28 December 1993 on specific measures for the prevention of money laundering (which transposes the Directive) and its implementing regulations approved by Royal Decree 925/1995 of 9 June 1995 updated by the Law 19/2003 and Royal decree 54/2005 of July 5. The preventive legislation in Spain (law 19/1993) brings several problems: -Exchanges of information between SEPBLAC (the fiscal unit information of Spain) and Tax Administration. SEPBLAC investigates crimes and Tax Administration investigates administrative infractions. A tax payer who is being inspected by one tax inspector can be sanctioned because the SEPBLAC has information about him. But the SEPBLAC was created to prevent money laundering not for regularized the situation of the tax payer, so this can causes legal uncertainty -The restriction of attorney / client privilege of lawyers and tax advisors. The preventive legislation establishes obligations of information and cooperation with the Administration that can collide with the attorney/client privilege of lawyers, and in some cases with the attorney/client privilege of tax advisors, because they should inform SEPBLAC of suspicious operations of their clients. Which is the relation between money laundering and tax evasion? Although they are different procedures, they share the same skills of concealment, and they can be commited across the tax haven. Moreover, tax evasion can be the previous crime of money laundering which has cause disagreement in the doctrine.