[Home]Money laundering

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Money laundering, to conceal the source of, to prevent knowledge of. Money laundering is a common practice used by members of organised crime eg. [drug dealers]?, Mafia.

If someone is making thousands of dollars in small change a week from their illegitimite business, and wishes to deposit that money in the bank, they cannot do so without drawing suspicion. Deposits of more than $6000 require an investigation by the government in the U.S. To launder that money would be to give it to an intermediary who is already making lots of paper money. The intermediary can then deposit that money into their account, and write a check to the individual running the illegitamate business after taking a premium. Thus, the individual draws no attention to himself, and can deposit his check into a bank account without drawing suspicion.

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Last edited November 2, 2001 10:34 pm by WojPob (diff)