# Introduction oney Laundering is termed as money illegally obtained from the national economy and kept abroad for vested interests. This money is consisted of kick-backs, under/over invoicing gains, casinos, real estates and cash carriage in big/small lots" Whereas this menace is faced by many countries like Afghanistan, Iraq, Libya, Iran, UK; Pakistan is also included in money laundering process. Rather in Apex Court, proceedings are undertaken for writing letters to Swiss Banks for bringing said money in Pakistan but government is reluctant to write such letters as immunity is applied under constitution of Pakistan for President. Even contempt of court case is pending adjudication against Prime Minister of Pakistan for not writing letter. In Pakistan besides President many high ups are involved in money laundering. A law has been promulgated in 2009 # ? Black salaries This issue is not only that of Pakistan rather it is faced by most of the third world countries. This needs eradication on national as well as on international level. II. # Problem Of The Study Why money laundering is increased day by day and what are their effects on economy? And Is this money used for the welfare of the people of the economy? III. # Objective Of The Study How it affects the nation and how much people aware of it. Economy's growth by preventing/controlling laundering money and use of this concealed money by legitimate means for the development and welfare of people. # IV. # Literature Review # Ridley, N. This deals with organized crime, money laundering, and terrorism. It traces the differing "M organized crime dynamics following the events of 1989, and discusses differing interpretations and concepts of organized crime. It then deals with international anti-this are the similarities-and differences-between money laundering and terrorist financing? There is a growing nexus between organized crime and terrorism which should not be overestimated when meeting the challenge of terrorist financing. The analysis of money laundering that finances the 'new' terrorism of the post-9/11 era has been further hampered by remaining locked into static money laundering concepts. This results in intelligence oversights, particularly in the area of exploitation of offshore jurisdictions. [1] Billy Steel "Money laundering is called what it is because that perfectly describes what takes place -illegal, or dirty, money is put through a cycle of transactions, or washed, so that it comes out the other end as legal, or clean, money. In other words, the source of illegally obtained funds is obscured through a succession of transfers and deals in order that those same funds can eventually be made to appear as legitimate income". [2] Ignacio R. Bunye The Financial Action Task Force (FATF), the international body established to fight money laundering and terrorist financing on a global scale, stressed that the economic and political influence of criminal organizations could weaken the social fabric, collective ethical standards, and the democratic institutions of society. The FATF also pointed out that criminal influence could likewise undermine countries' efforts in transitioning to democratic systems. Money laundering is inextricably linked to the underlying criminal activity that generated it. Laundering, the FATF emphasized, enables criminal activity to prosper. [3] V. # Methodology It was analytical study conducted from March 2012 to April 2012. A group of 51 people was take part in this study through predesigned questionnaire which was consist of four parts, one related to the demographic portion, 2nd related to awareness of money laundering, 3rd related to the laws applies or not for stop money laundering and 4th related to the affects of money laundering on business 5th related to the reuse of money laundering for the welfare of nation. Convenience sampling was used in our survey and 50 samples were selected from the population of the different cities of Pakistan. # VI. # Results About the money laundering 100% salary persons know about money laundering and 100% of businessmen know about money laundering.88% salary persons and 65.4% businessmen suggested that money laundering can be stopped through education awareness in educational institutes,12% of salary persons and 26.9% businessmen suggested that money laundering cannot stopped through education awareness in educational institutes. And 7.7% businessmen did not know. About to stop money laundering through awareness in media 80% salary persons and 69.2% businessmen suggested yes and 16%, 30.8% not suggested and 4%, 0% did not know respectively. 64% and 46.2% salary persons and businessmen said yes that money is used in evil manner for terrorism.20% and 42.3% salary persons and businessmen said yes that money is not used in evil manner for terrorism.16% and 11.5% did not know about this awareness. (Table -1) Money Laundering-A Negative Impact on Economy money laundering measures and perceptions. Linked to ear About the affects of money laundering,88% salary persons and 96.2% businessmen said "yes" it means that the money laundering affect on national income.8% salary persons said "no" and 4% and 3.8% did not know.84% of salary persons and 84.6% businessmen said "yes" that tax saving is a money laundering offence.16% and 15.4% salary and businessmen said that tax saving is not money laundering offence.88% and 96.2% salary persons and businessmen said "yes" it means that money laundering affect the national business.8% salary persons said that money laundering did not affect the national income.4% and 3.8% salary persons and businessmen did not know how it affect on national business. About the affect of foreign investment in country due to money laundering,76% salary persons and 73.1% businessmen said that it affect the foreign investment.20% and 23% said "no" it does not affect on foreign investment.4% and 3.8% did not know about it, respectively. Pakistan is put on blacklist due to money laundering, 60%salary persons and 53.8% businessmen said "yes". 40% and 38.5% said that Pakistan is not in the blacklist due to money laundering. And 7.7% businessmen did not know about it. (Table - About the laws of money laundering,96% salary persons and 84.6% businessmen said "yes" that it apply all of us. And 4%, 15.4% said it does not apply. About presence of the international forum to eradicate money laundering in our country,68% salary persons and 80.8% businessmen said "yes" there is an international forum.16%,19.2% said there is no international forum and 16%salary persons did not know about it.88% salary persons and 92.3% businessmen said the state bank of Pakistan play pivotal role for stopping money laundering through banking.8%,3.8% said "no" and 4%,3.8% did not know about it, respectively.80% salary persons and 76.9% businessmen said "yes" there are anti-money laundering laws in Pakistan.20%,19.2% said "no" there are not anti-money laundering laws in Pakistan and 3.8% businessmen did not know about laws of money laundering. (Table -3) About the corrective measures can be taken in hand to prevent this money laundering 12% of salary persons and 7.7% businessmen said that through Tax money can be prevent,28%,26.9% said that there would be corruption free system,28%,11.5% said that adopt proper channel by using registered money launders to prevent money,28%,38.5% said that solid anti money laundering laws should be implemented,4%,15.4% said that state bank and FIA should take action to prevent money. About the responsibility of Government to stop this money laundering,4% salary persons and 7.7% businessmen said there should be a taxpaying stream.4%,3.8% said there should be Fiscal & monetary policy to stop money laundering.24%,7.7% said that there should be a direct action against laundered persons.28%,15.4% said that there should be efficient banking system and records to stop money laundering.16%,23.1% said that the government should contact with international community and verify all records.4%,23. # Analytical Results In the cases regarding the awareness about money laundering, in results there is no association. This shows that businessmen and salary persons (Government employees, lawyers and MNA's) both respondents are on same side that they are unsatisfied about the awareness of money laundering through education and media. The following table shows the statistical figures of cases/ questions related to the awareness about money laundering. In which it's cleared that the results are no association because P-Value of all cases is greater than 0.05 (Table 6). # Table 6: There is no association between occupation and awareness of money laundering # Cases # Chi-square value P-value Can this laundered money be stopped and used through education awareness in educational institutes? # .121 Can we stop money laundering through awareness in media? # .298 Can this money be used in evil manner for terrorism? # .229 Under the affects of money laundering on business, in results there is no association which means that the salary persons respondents and businessmen respondents both are unsatisfied or at neutral at the edge of money laundering affects on business. The Table 7 shows the chi-square and P-value of the cases in which the P-value is greater than 0.05. . # .965 Can Pakistan be put on blacklist due to money laundering? # .365 In the case of laws apply for reduction of money laundering; in results there is no association which is directing to the dilemma that there are no anti-money laundering laws used to reduce the money laundering. The Table 8 is showing the chi-square and P-value of the cases which are greater than 0.05. . # .612 In the case of welfare items, in results there is no association which are directing to the dilemma that laundered money is not used for the welfare items and salary persons and businessmen both are on the same way of sharing information. The Table 9 is showing the chi-square and P-value of the cases which are greater than 0.05. # .256 In the case of corrective measures to stop money laundering, in results there is no association which are directing to the dilemma that laundered money is not used for the welfare through reduce taxes, and salary persons and businessmen both are on the same way of sharing information. The # VIII. Recommendations And Conclusion There are some ways to reduce this menace Awareness be spread on gross root level where everybody should be hold enough to say "Nip the evil in the bud" this is possible when printed and electronics media plays its constructive role. Centralization policy for according approval mega and small development projects be enacted forthwith and strict vigilance control on approving authorities be envisaged. Thus money laundering will be prevented up to maximum level. Laws be legislated in parliament and judiciary be made strong to have strict control on money laundering. International laws be formulated and particularly on banking system only then money laundering can be controlled. For example, if one billion rupees money is laundered and deposited in fore+ign bank, either that bank should refuse to deposit such illegitimate money or be remitted back to the native country's government for its legitimate use on national level. # IX. # Conclusion According to our study we conclude that the responses from the occupation it is clear that people are aware about the money laundering. In this study we discover that there is no association between occupation and awareness of money laundering it means they both are known about money laundering. . In this study we discover that the money laundering is having an effect on national income and it also affects the foreign investment. According to both respondents, there are some anti-money laundering laws that can prevent the money laundering. According to both respondents we can re-use the laundered money for the welfare of nation. Government can also stop the money laundering through tax saving, efficient banking record system and develop awareness in nation by media. So the five elements on which the whole study is consisted are the ways to improve the laws against money laundering and reduce this evil crime. Pakistan 2009)Money laundering takes several different forms:? Structuring? Bulk cash smuggling? Cash-intensive businesses? Trade-based laundering? Shell companies and trusts? Bank capture? Casinos? Real estate no20122and Business Research Volume XII Issue XVII Version IGlobal Journal of ManagementQuestions Do you know about money laundering? Can this laundered money be stopped and used throughYes Fre que ncy 25 22No F 100 0 % 88 3Do not know % F 0 0 12 0% 0 0Yes F 26 100 0 No % F 17 65.4 7Do not know F % 0 0 26.9 2 % 0 7.7education awareness ineducational institutes?Can we stop money laundering2080416 1418 69.2 830.8 00through awareness in media?Can this money be used in evil1664520 41612 46.2 11 42.3 311.5manner for terrorism? 2 noSalary PersonsBusinessmenQuestionsYesNoDo notYesNoDo notknowknowFreque ncy%F%F%F%F%F%Is there any money laundering2288281425 96.20013.8affect on national income?Is saving tax is a money21844160022 84.6415.4 00laundering offence?Does money laundering affect2288281425 96.20013.8national business?Does money laundering affect19765201419 73.1623.1 13.8foreign investment in ourcountry?Can Pakistan be put on1560 10 400014 53.8 10 38.5 27.7blacklist due to moneylaundering? noIs there any international1768 416 41621 80.8 519.2 00forum to eradicate moneylaundering?Can state bank of Pakistan play2288 281424 92.3 13.813.8pivotal role for stoppingmoney laundering throughbanking?Are there any anti-money2080 520 0020 76.9 519.2 13.8laundering laws framed inPakistan?About the re-use of money laundering,Pakistan.72% salary persons and 57.7% businessmen80%salary persons and 46.2% businessmen said thatsaid that this money can be used in developmentlaundered money can be used for the welfare of theprojects of the country,24%,42.3% said this moneypeople of Pakistan.20%, 53.8% said the launderedcannot be used in development projects of the countrymoney cannot be used for the welfare of the people ofand 45 salary persons did not know about it. (Table-4)Salary PersonsBusinessmenQuestionsYesNoDo notYesNoDo notknowknowFreque ncy%F%F%F%F%F %Does the money laundering2496 140022 84.6 415.4 00laws apply all of us? -Salary PersonsBusinessmenQuestionsYesNoDo notYesNoDo notknowknowFreque ncy%F%F%F%F%F%Can this laundered money be2080 520 0012 46.2 14 53.8 00used for the welfare of thepeople of Pakistan?Can this money be used in1872 624 1415 57.7 11 42.3 00development projects of thecountry? 7CasesChi-square valueP-valueIs there any money laundering5.765.065affect on national income?Is saving tax is a money.004.952laundering offence?Does money laundering affect2.173.337national business?Does money laundering affectforeign investment in our country? 8CasesChi-square valueP-valueDoes the money laundering laws1.868.172apply all of us?Is there any international forum to4.514.105eradicate money laundering?Can state bank of Pakistan play.401.818pivotal role for stopping moneylaundering through banking?Are there any anti-moneylaundering laws framed inPakistan? 9CasesChi-square valueP-valueCan this laundered money be6.246.012used for the welfare of the peopleof Pakistan?Can this money be used indevelopment projects of thecountry? 102012ear2and Business Research Volume XII Issue XVII Version IGlobal Journal of Management © 2012 Global Journals Inc. (US) Global Journal of Management and Business Research Volume XII Issue XVII Version I ## This page is intentionally left blank * Prior to this Nick was an intelligence analyst at New Scotland Yard, in the Anti Terrorist Unit, and at Europol in The Hague OrganizedNRidley Crime Money Laundering, and Terrorism, Oxford Journals Law PolicingVolume2 DASS London Metropolitan University Senior Lecturer, John Grieve Centre * Billy Steel. All rights reserved 1998. 2006 * totingbunye2000@gmail.com.,articles may be * Me and My Shadow: Estimating the Size of theUS Hidden Economy from Time Series Data DAigner FSchneider DGhosh 1988 W.A * ERBarnett HBerndt White Dynamic Econometric Modeling Cambridge, United States Cambridge University Press * Global Money Laundering and Terrorist Financing Threat Assessment March 2011 Financial Action Task Force * BrentBartlett The Negative Effects of Money Laundering on Economic Development May 2002 * Asian Development Bank. Retrieved 19 September 2011 * The Global Anti-Money Laundering Regime: A Short Overview Cayman Islands Journal Richard Horowitz January 6, 2010 * International Money Laundering Information Network National Money Laundering Threat Assessment 10 33 December, 2005. 3 March 2011. October 2011. 11. 1 September 2010 Informal Value Transfer Systems. Financial Crimes Enforcement Network