Financial policies applied in combating money laundering

The concept of money laundering is the introduction and legalization of money obtained through illegal or unexplained methods, by making use of the gaps in the law and financial techniques through some frauds. Many methods and techniques have been used throughout the history by individuals or institutions in money laundering. Due to the emergence of globalization after 1980s, developments in financial techniques and financial technologies, diversity in money laundering methods has also increased. The purpose of money laundering is to finance crime, earn crime income, tax evasion, manipulation, terrorist financing, etc. to make transactions in an illegal area such as. States, on the other hand, try to fight against money by taking public financial control and legal measures. In this context, criminal sanctions are applied to detect, monitor and prevent illegal money circulation. States take some measures to combat money laundering. It also collaborates and shares information with other states. This is because international cooperation is required to combat cross-border crime organizations. In this context, while the states make legal regulations in their own domestic laws, at the same time, some conventions, protocols, joint activities and principled decisions are taken with other states. Although cooperation and precautions are taken, it is not possible to fight against money in full due to the vast opportunities, legal gaps, insufficient struggle and bribery offered by the financial system. In this study, explanations about methods used in money laundering, legal measures, cooperation between states and applications of some countries were made.