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 ?
Furthermore, some bearer bonds "are almost equivalent to cash because they can be easily redeemed at financial institutions," a gift to money launderers. FATF explained: "Illicit assets can be placed in the securities industry through the purchase of bearer securities.
Since giving up his criminal career, Rijock has also trained undercover agents for the Royal Canadian Mounted Police, acting as a money launderer in an undercover role on behalf of law enforcement in Florida, and on behalf of network television in the tax havens of the Caribbean, and acting as consultant in money laundering tactics for a major Hollywood motion picture studio.
To pursue the evidentiary trail of a money launderer, law enforcement agencies must identify and use tools and techniques that can help them when crossing international boundaries.
Luis Santiago Calle Quiros and Maria Paloma Rodriguez Badillo are longtime partners of Colombian money launderer Isc Perez Guberek Ravinovicz, who, along with his son, Henry Guberek Grimberg, and his secretary, Johanna Patricia Ceballos Bueno, were designated under the Kingpin Act by OFAC on July 9, 2013.
To help pull the sector's head out of the sand, FATF lists seven key methods used by money launderers to abuse the insurance industry:
These include 'assistance' with money laundering, 'tipping off' money launderers about an investigation against them, failing to report money laundering, and 'acquiring' laundered money.'
A MERSEYSIDE man is due to appear in court today accused of being the first ever money launderer in euros.
Kenneth Rijock, a former career money launderer for a narcotics trafficking organization, criticized law enforcement efforts as being conducted by agents and officers without advanced degrees in finance and law, and who generally never worked in a commercial business setting." He called for enhanced training and long-term educational requirements for these agents, including subsidies for postgraduate degrees.
Although hiding funds increases the risk of seizure by authorities or theft by other criminals, it eliminates the need for a professional money launderer, who typically charges a fee ranging from 3 to 5 percent to assist in transferring the money through legitimate financial institutions.
He went on to say neither he was money launderer nor was he holding assets in other countries; I have no offspring.
In no democracy in the world would this be acceptable: a disqualified money launderer's face on a government health card!
A SUSPECTED money launderer is feeling less than flush after police found PS38,000 hidden in her toilet cistern.