Professor at the University of Bahrain Reviews the Crime of Money Laundering and Ways to Prevent it

Sakhir – University of Bahrain (Ali Al-Sabbagh)

October 4, 2022

A research at the University of Bahrain confirmed that money launderers may not hold the laundered money, being money generated from illegitimate sources, even if disguised to deceive the regulatory authorities.

Money laundering is defined as a group of overlapping financial operations to disguise the illegal source of so the proceeds may appear legitimate, or to contribute to conceal or transfer the direct or indirect proceeds of this crime

The research, conducted by the faculty member in the Department of Arabic Language and Islamic Studies at the university, Dr. Dr. Salman Duaij Bousaeed, published last month in the Journal of the Islamic University of Sharia Sciences, the Kingdom of Saudi Arabia stressed that money laundering is a crime that takes many modern forms. The researcher explained that this crime has multiple dimensions, including the legitimate, financial, legal, and ethical aspects.

The research titled, “Money Laundering, the Legal Provision of Holding and Making Use of it and Ways to Dispose of it” aimed to deeply examine the legal aspect. It addressed the concept of money laundering, its traditional and modern sources, its legal provision, and ways to dispose of it from legal point of view.

The research pointed to the sources of money laundering, including drug trafficking, bribery, dealing in illegal goods, commercial fraud, tax evasion, debauchery and prostitution, illegal speculation, and human trafficking.

The research concluded that laundered money can be disposed of by returning it to its original owner, if known and can be reached, or given to his heirs. In case the owner cannot be reached, the laundered money shall be spent in charity. The state may confiscate the laundered money and direct it to the eligible parties through specific mechanisms.

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