Money Laundering

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Money Laundering

Disguising the source of money generated through illegal activities so that it resembles legitimate income. Money laundering involves breaking up large amounts of cash into smaller transactions, changing its form through investments or deposits into bank accounts, and moving the money through seemingly legitimate businesses to bring it into mainstream economy.

Money Laundering

An illegal act in which one makes illegally obtained money appear to be legally obtained. For instance, one may route money obtained in drug trafficking through a shell company to give it the veneer of legitimacy. One formerly common example is the practice of exchanging illegally obtained money for coins and placing them into a soda machine. One then deposits money from the soda machine such that it looks like the money came from the purchase of sodas rather than from its real source.

money laundering

the conversion of money (often obtained illegally through crime) into foreign currencies through multi-bank deposits to hide their source of origin, through bureaux de changes and through investments in ‘legitimate’ businesses.

In 2000 the OECD backed an initiative (made the more urgent by the terrorist attacks on the USA) for countries (in particular, TAX HAVENS) to require greater disclosure and scrutiny of ‘suspect’ bank accounts.

References in periodicals archive ?
Adams had pleaded guilty to one charge of laundering money between 1997 and 2003.
One of the less controversial and less publicized parts of the sweeping law enforcement act, aimed at preventing terrorists from laundering money, gives the federal government power to scrutinize financial institutions' customer records.
Zdanowicz, director of the Center for Banking and Financial Institutions at Florida International University, in the USA, said it was important to distinguish between laundering money that came from illegitimate sources and "capital flight" which was moving money to avoid economic or political risk.
He was charged with laundering money through his own businesses, including a car dealership, eight banks and a frozen-food company.
Call me naive, but I would have thought there are easier and safer ways of laundering money than gambling on a turn-round of form over eight flights of hurdles, as this week's Sunday Times report seemed to suggest.
Another method for laundering money involves structuring financial transactions.
The Complaint alleges that YBM, through one or more of its subsidiaries, engaged in a continuous practice of laundering money accumulated by organized criminal activities in Russia.
Treasury department's plans to penalise lenders suspected of laundering money, according to a report by the WSJ.
The five-member bench, headed by Justice Farrukh Irfan Khan, dismissed a petition against Prime Minister Nawaz Sharif in 1991 which alleged that the premier is involved in laundering money out of Pakistan after plundering the national exchequer.
confessed to laundering money which he collected from Asian men.
AS WELL as exploiting people like the Morecambe Bay cockle pickers, gangland crime bosses are also running prostitution rings, selling drugs and laundering money.
Bush signed into law last month, requiring a government study of hedge funds and their potential use for laundering money.