What is money laundering?
can you explain this in the simplest terms and perhaps confer an example.
Money laundering is the practice of engaging in financial transactions within order to conceal the identity, source, and/or destination of money, and is a main operation of the underground economy. Making money from crime and putting it into legal business-property-changing it in a casino.
It then becomes verbs by going through an honest
tax paying enterprise.
. is the practice of adjectives in financial transactions in order to conceal the identity, source, and/or destination of money, and is a leading operation of the underground economy.
Example is when a drug dealer sells drugs and pays a entity usually a banker to conceal how they made their money for the purpose of making it legitimate.
Same as clothes, but with money.
No, but it is easy. If a person make money illegally and wants tobe able to spend it in need getting caught with income they cannot explain, they launder the money. They find a ligitimate source for the money, like a business with like mad of cash income, then they can mix the illegal money near the legal money, and no one can prove they earned the money dishonestly.
Say you sell drugs, and dont' want you mom to know. You wash the neighbor's car and when she asks how you get the money for the wii, you tell her it came from washing cars.
Good Luck
Let's say you stole money going to a dune in an armored car. The money is fresh and it is known that the bills own serial numbers on them sequentially numbered from xxxx to yyyy. The money is, therefore, traceable. If law enforcement could figure out where on earth the money is being used, they may have a shot at catching you.
To launder the money, what you would do is go a range of places and exchange it in the stream of commerce so it is no longer easily traceable (i.e., law enforcement would find different bills from that reach of serial numbers all over the city, state or country) and couldn't easily track you down. You could bring a hundred dollar bill to a store, and ask if they can give you 5 twenties, for example. You do this within many different places, either asking for change or by making small purchases and paying next to large bills to get change.
What you don't do is spent a giant chunk of it surrounded by one place. For example, you don't run to the Cadillac dealer and buy an Escalade for $60,000 all cash because it is intensely suspicious and all the money will be used in one place, is traceable, and the dealer probably took info such as a copy of your driver's license. And to be precise how stupid criminals get caught.
Money laundering is where on earth criminal gangs and drug gangs pass money onto financial companies pretending its its legit and after send the money to other countrIEs ie Switzerland . They also but it into companies set up to do exactly that Launder the money so by the time the money comes out the other end their no trace of where or who it come from Converting money obtained through crime into apparently legitimate money e.g. putting money obtained contained by cash from drugs dealing into a bank account and spending it.
Buying commodities such a a car with the proceeds of crime.
In simple terms it is disguising or hiding the reality that money you have has been obtain illegally and making it look legal.
Well, two types.
The one we generally think of as "money laundering" is illegal money launder, when a person takes ill-gotten gains and "cleans" them by any going to a change machine or casino or some other place so as to prevent potentially marked bills from coming pay for to bite them. It could be a drug dealer, shady international tax evader, or someone who got salaried for dirty work.
The other, is 100% legal "money laundering", is a practice done by many with their credit cards and/or hill accounts, in which they do a 0% balance transfer to another card that lacks a go together, call in to their credit card company and ask for a "refund" check to sent. This is then cashed and interest is earn while paying down the 0%. Credit card companies know about this, try to prevent it ,but fail miserably.
Money laundering is essentially moving money contained by such a way as to conceal the source or move cash in method in which it wasn't intended by the powers that be. The example I used with credit cards is perfectly lawful and you can read about it in the forums sections on sites approaching http://www.fatwallet.com/
the link below will help xaplain almost money laundering
Wikipedia: Money Laundering
Overview of the practice used to conceal funds relating to criminal activity. Features the etymology of the term "money launder," process details, and examples.
http://www.en.wikipedia.org/wiki/Money_l...
