Money laundering is any kind of receipt, handling or transfer of gains (profits or assets) obtained by illicit means, whether in violation of the Penal Code or special laws.
Money laundering is a key prerequisite for organised crime to thrive within society and across borders. Money laundering has a negative impact on society's financial system, hampers free competition, and hinders the proper functioning of market forces. This is why it is vital for the state to have reliable and visible supervision and to ensure that obliged entities have an appropriate supervision system in their operations. This discourages criminals from preying on the financial system of the relevant state.
The financing of terrorism is the conduct of raising funds for the purpose or with the knowledge that the money is to be used to commit a crime that is punishable under the provisions of Article 100 (a-c) of the General Penal Code no. 19/1940, i.e. commit terrorism, support a party who commits such acts or encourage them. The objective of a terrorist or group of terrorists is to incite, support or carry out acts of terrorism and in many cases they do so with funding.