How Money Laundering Works

How Money Laundering Works

How to Clean Dirty Money, Of course, this is hypothetical. Not every "How To" is a recommendation
If you're anything like me, you've mastered "Money Laundering 101" thanks to popular programs like Ozark and Breaking Bad (The linked examples are highly entertaining explanations of how money laundering works in their TV worlds, for reference.)

Laundering money does not, of course, mean actually cleansing your cash—it is the practice of making unlawfully obtained money appear to come from supposedly legal company activities in order to avoid the wrath of the IRS or police authorities.
What Exactly is Money Laundering?

What Exactly is Money Laundering?

As previously stated, money laundering is the act of making money gained through criminal methods, such as drug sales, appear to be legitimately earned. There are several pathways for cleaning up dirty money, but three basic processes are generally involved: placement, stacking, and integration. Here's a quick rundown of how each stage works:

1. Placement. This is where illicit money is disguised as lawful assets. This is where thieves first bring their riches into the financial system, and it is also where they are most vulnerable to detection.

2. Layering. This procedure separates the money from its shady sources. It might take the shape of transfers between various bank accounts or large purchases. Casinos are a perfect example of layering since significant quantities of money change hands every night, basically getting "washed" over and over again. A skilled launderer would weave an elaborate web that is difficult to follow, such as sending money to one offshore account, then to a shell company, then to another shell company, and so on.

3. Integration. Money can be introduced into regular financial channels once it has been cleansed. The original thief can now access their money through totally "legal" routes, such as purchasing property or forming another shell corporation to launder even more money.
Money Laundering Techniques

Money Laundering Techniques

The most obvious picture of money laundering is a cash business, such as a car wash or a strip club. There are several methods for laundering money, and the digital age has only made it simpler for professionals to innovate in the laundering game. Here are some of the most prevalent methods and routes for money laundering:

Disguising filthy money through gambling, investing in real estate, or using shell firms.
Using "smurfs," or trading dirty money in tiny amounts to conceal the total amount of monies.
Laundering via trade, in which they manipulate the price and amount of imports and exports to generate a paper trail of fraudulent profits.
Having a bank or mortgage company where they can quickly transfer money across financial organizations.
Opening international accounts and profiting from foreign currency rates
Committing online banking fraud by depositing funds straight into a victim's account and then making unlawful withdrawals from their account.
Online payments, such as pre-paid gift cards, can be loaded and redeemed.
The final word on Money Laundering

The final word on Money Laundering

Money laundering is an important part of organized crime, and it is changing: new technology and cryptocurrencies provide launderers with new means to circumvent the ever-changing system. Simultaneously, law enforcement and government organizations continue to evolve in order to uncover money laundering schemes. And, while we've had a good time here today, keep in mind that money laundering is a highly criminal practice. Not every "how to" article is a recommendation.

Here is How to Launder Money like a Criminal

We're not suggesting you channel your inner Walter White, but here's how you could (theoretically) proceed.
 #MoneyLaundering #MoneyLaunderingCase #MoneyLaunderingAct

SOURCE: lifehacker

What do you think of this blog? Write down at the COMMENT section below.

No comments: