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 ?
Dr Galeotti paints a vivid picture of how the status of money launderers rose within the underworld hierarchy in Russia in the 90s, changing the balance of power and giving rise to turf wars and street battles.
The smuggling of cash and valuable goods across borders is a traditional but still prevailing money laundering technique, especially when it becomes difficult for money launderers to use financial institutions which are required to report suspicious transactions, wrote M Michel Danet, secretary general of the World Customs Organisation in World Money Laundering Report last year.
Money launderers can use more than one method, from the purchase and resale of a luxury item such as a car or some jewellery to passing money through a complex web of legitimate businesses.
While Escobar was the notorious "Cocaine King" - who netted a [euro]25billion fortune before dying in a police raid in 1993 - it was the money launderers and fixers who made the illegal trade tick.
Juan Manuel Alvarez Inzunza is a Mexico-based money launderer and drug trafficker who provides key money laundering services to high-ranking Sinaloa Cartel members.
So a hedge fund's liquidity could dissuade a prospective investor who is already a money launderer, but it may not affect someone who at the time of his hedge fund investment is a legitimate businessperson and later runs afoul of the law.
Not all international money launderers, it seems, are built the same.
His right-hand man, convicted money launderer Francis McGrath, 59, is on the list and is subject to financial restrictions.
gives rise to a particular risk: a money launderer can purchase a variable annuity and then seek a refund during the free look period.
A MONEY launderer, who helped clean up more than pounds 15m stolen from NatWest, was jailed for four years and three months yesterday.
World-Check says Rijock is believed to be the only former banking lawyer-turned career money launderer who actively consults with law enforcement and the financial community.