The practice of disguising illegally obtained funds so that they seem legal is known as Money Laundering. This practice is a key of underground economy. It is defined under common law as crime. Its definition is different from its jurisdiction.
It is considered as engaging in financial transaction to hide identity or illegally obtained money.
British law defines money laundering as under,
“The act is defined as taking any action with property of any form which is either wholly or in part the proceeds of a crime that will disguise the fact that that property is the proceeds of a crime or obscure the beneficial ownership of said property.”
The money laundering was applied to financial transactions related to organized crime in the past. But now it has more wide meaning.
According to US Office of Comptroller of Currency it is related to “any financial transaction which generates an asset or a value as the result of an illegal act” and it may also lead to tax evasion and false accounting which eventually leads to undocumented economy. In United Kingdom, it may involve any economic good if not money.
In these types of cases, people who are involved may be at private citizens, drug dealers, government corrupt individuals, members of crime based organizations (which are known as Mafia) and even states trying to buy illegal arms and equipment.
If you are thinking about getting rid of bad money, you can do it by adopting theses methods;
- Placement i.e. get your money into some financial system
- Layering i.e. transfer it from one place to another to conceal the illegitimate stamp
- Integration i.e. convert it into legitimate funds
Having understood much about money laundering and people involved in it lets start finding ways to get out of this business. If you are thinking about washing all your money gathered from illegal means then here are some ways to do that. More openly its how you can do it.
Casinos
That’s the place which makes it’s easier to do that. In the story of the year 1970, a person who wants to convert its illegal money to legal one, went to casino with $1.2 million. He gambled some of the money away and came back with chips for $100 cashed in $800,000 in chips that would easily fit in an attaché case. He then deposited all his money in the Swiss bank.
Investing in some business
It is another very good option to invest in some business which works with lots of cash like check cashing services, travel agency, grocery store etc. you can also invest that money in some businesses in which it’s difficult to calculate the total money like some businesses of precious metals, diamond jewelry, antiques etc. as its hard to make inventory in that type of businesses law enforcement agencies cant make sure the total cost of that type of business.
Stock market
This is also very safe mode of investing that bad money. Through different brokerage firms, you can invest small amount of money several times a day. Multiple accounts with varying firms will not make you suspect as brokers don’t talk about their customers to each other. If you just use your cash in the name of the front company, that will alos make you less suspect.
Putting money in the Bank
There are lots many ways to make it difficult to understand where you get billion dollars if you put your money in the bank. You can put your money in the offshore account in the places like etc the Cayman Islands, the Channel Islands, Bermuda, Luxembourg, etc with no taxes and where strict secrecy laws are obeyed. Then you can get a loan from the banks of the places mentioned above in the name of some company. This process will make you to get a legal loan document. When FBI asks about it you can show the legal process adopted to get a loan. In this way you don’t have to pay any tax as it is loan money and actually you are paying it back to you.
Now a days money laundering has become a statement of high finance. According to some people it is the third largest business of the world after legitimate currency transactions and auto industry. It has concealed many notorious people behind. According to the estimates of criminal finance experts 75% of US money laundering cases involve illegitimate drug trafficking and terrorists also gets their share in the money.
The millions and billions of dollars are being backed by criminals in the market place. For them they are just hiding their money got from illegal sources. For them the good of the market is not their business.
This is very basic and not very well put together, what a waste of time
Nice tips…