FRAUD
EXTORTION
Corruption as a crime
Public corruption is considered a federal crime . Thus , bribing a public official is considered a criminal act not only by the one receiving the bribe but also by the one offering the bribe . Furthermore , the U . S . Constitution has made bribery one of the two explicit crimes that could lead to the impeachment of a U . S . president . 5 Corruption is considered a white-collar crime and , therefore , sometimes gets favorable treatment under the law as opposed to violent crimes . The perception of and the attitude toward white-collar crime are different from that of violent crime . It is often this fascinating phenomenon that white-collar crimes bring to the table that results in these types of offenses being treated differently by the public . For example , in some countries 6 ( mainly seen in developing countries ), bribing a public official is customary to either get a routine service completed or expedite the performance of those government offices . In cases such as this , it is the battle of morals and the perception of the individual that determines the level of corruption . In some cases , embezzlement is harder to detect ; thus , the perpetrators and victims are harder to identify , making it much harder to enforce the law on the perpetrators . 7 Many times , violent crimes are easier to prosecute as the perpetrators and victims are clearly identified .
Corruption as a predicate offense for money laundering
By definition , corruption in any form is illegal across the globe . However , there seems to be a gap in enforcement against the perpetrators based on a nation ’ s legal system and political structure . Money laundering , by definition , is hiding ill-gotten funds by perpetrators . Thus , financial gains obtained through corruption get transferred via various channels , either legally through financial institutions ( FIs ) or illegally through various other forms of underground channels . Many times , financial gains obtained through corruption are transferred to tax haven jurisdictions to avoid detection . 8 When corruption is linked to a predicate offense for money laundering , enforcing the law on perpetrators is much more effective as money laundering carries a severe penalty within the anti-money laundering ( AML ) and counter-terrorist financing regulations within a country . Financial or property gains obtained through corruption can be effectively traced and confiscated through international coordination when corrupted gains are laundered by perpetrators . 9
Consequences of corruption
There are significant consequences of corruption . These effects are widespread across regions and countries . Many financial and economic losses stem from direct losses not only to the individual victim ( s ) but also to the society as a whole . Corruption starts with
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