Money Laundering

Did you know that money laundering is one of the biggest financial crimes? Find out how money laundering works and the common money laundering cases.

Money Laundering

What is Money Laundering?

Money laundering refers to the unlawful process of making vast sums of money created by illegal activities, such as terrorist funding or drug trafficking, appear as if they have come from legal sources. The money from the unlawful activities is regarded as dirty, and the process “launders” it to make it appear clean.

Money laundering is a serious financial crime that is carried out by both street-level and white-collar criminals. Several financial firms have levied anti-money laundering policies to track and prevent this illegal activity from running unhindered.

How Does Money Laundering Work?

Money laundering generally entails three steps, i.e.,
placement, layering, and integration.

1. Placement is where the “dirty” money is added to the legalfinancial system.

2. Layering obscures the origin of the money through a number of transactions and bookkeeping tactics.

3. Integration is where the laundered money is drawn out from the legal account to be used by the criminals.

What Are the Common Money Laundering Cases?

As mentioned before, money laundering is often used to hide cash flows created
by illegal means. These means could include:

1. Drug Trafficking

2. Domestic and international terrorism

3. Embezzlement

4. Arms and weapons trafficking

5. Gambling

Do you know someone engaging in money laundering? File a complaint today.

Contact FraudTrac for more details.