How Criminals Do Money Laundering Essay

941 words - 4 pages

Money is the main reason that most people end up engaging in criminal behavior. Money laundering is how criminals sometimes choice to hide the money they make through their illegal activities. They will do almost anything to protect their wealth and enterprise. There are many different types of money laundering, International, small business, and drugs. We will research how these criminals run their money laundering schemes, and for a while avoid the attrition of police Officers, by trying not to get caught with evidence that can put them away for life.
“Money Laundering is concealing the source of illegally gotten money, or the activity of keeping something secret.” According to Wise geek there are several different types of methods money laundering that criminals can use. Some of these include shell companies, smurfing, overseas banking, underground/alternative banking, and investing in ligament businesses. Criminals that are trying to launder money also have other methods that they use one of these is called smurfing this strategy involves separating a lot of cash into smaller dividens in order to be less suspicious. In the United States, the transaction must be beneath $10,000 – this is the dollar amount that would need to report to the administration. The cash is then kept into one or more ledgers either by numerous individuals (smurfs) or by a solitary individual over an expanded period of time. Another form is overseas banking, money launderers regularly send cash through different overseas accounts in nations that have bank mystery laws, these nations permit unnamed managing an account. They may have several bank exchanges to and from overseas accounts. Some of these countries include the Bahamas, Bahrain, the Cayman Islands, Hong Kong, Antilles, Panam. Underground/alternative banking is another form where some nations in Asia have legitimate accounts that have undocumented stores, withdrawals and exchanges. These are trust-based organizations with antiquated roots, that leave no paper trail and work outside of government control. This incorporates the hawala framework in Pakistan and India and the fie chen organization in China.
Shell organizations are fake organizations that exist for no other explanation for why other than to launder cash. They take in cash as an "installment" for assumed merchandise and they essentially make the presence of genuine transactions through fake receipts and asset reports. Another method that money launders use is putting resources into honest to goodness organizations Launderers here put filthy cash in generally real organizations to clean it. They might utilize vast organizations like finance firms or they might utilize, money concentrated organizations like bars, auto washes, strip clubs or check-cashing stores. These organizations may be "front organizations" and true reason for existing is to clean the launderer's cash. This system ordinarily works in one of two ways: The launderer can join...

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