A Study On Money Laundering In Corruption From Bribery

The rising crime rate of corruption from bribery is one of the critical problems China is facing in its transition period. And in recent years, our government has greatly strengthened its measures against corruption from bribery. Thus some corrupted officials adopted the means of money laundering to conceal and make their extra income legal, which is usually gained from bribery. As a result, corruption from bribery and money laundering are now interdependent. Money laundering protects the corrupted officials while the corruption helps further the money laundering. The corrupted officials usually follow the three steps of bribery, money laundering, and escaping abroad, which heavily disturbs our social and economic orders. To meet this challenge, we need more theoretical research on the phenomenon of corruption from bribery and money laundering, which in turn can serve to guide our judicial practice, contributing to improve the related laws against money laundering and fight against corruption as well.Based on some cases, this paper elaborates the different ways of money laundering and analyzes this from the standpoints of economics and laws. Finally, the conclusion is drawn that with the lack of financial supervision, there arises the corruption from bribery. If the government can take related measures to fight against money laundering effectively, corruption will become impossible, for the corrupted officials can not use with money even they get it. The whole paper generally falls into 3 parts. The first part deals with the issue of money laundering and its harmful effects. Several specific means of money laundering are listed, money laundry through investment, transferring overseas, commission, bonus and so on. Each is followed by some typical cases and the harm of these acts is also pointed out. Based on the cases mentioned in first part, together with the economic theory of cost and profit, the second part covers the rules of money laundering and economic analysis of this behavior. And it reaches the conclusion that the lack of financial supervision is mainly responsible for the emergence of money laundering so that our government should work our sound financial supervision system to fight against money laundering efficiently and reduce the crime of corruption as well. The third part offers some suggestions to regulate money laundering in order to eliminate corruption. Three steps are listed: we should first establish a sound and full financial supervision system with The law against Money Laundering as its nuclear. Then we should improve our penal legislation on money laundering by referring to UN Convention Against Corruption. Finally, we should attach due importance to international communication and cooperation.