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.
