what is money laundering?

Question

WHAT IS THE PUNISHMENT?

Answer 1

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Money laundering, the metaphorical "cleaning of money" with regard to appearances in law, is the practice of engaging in specific financial transactions in order to conceal the identity, source and/or destination of money and is a main operation of underground economy.

In the past, the term "money laundering" was applied only to financial transactions related to organized crime. Today its definition is often expanded by government regulators (such as the United States Office of the Comptroller of the Currency), to encompass any financial transaction which generates an asset or a value as the result of an illegal act, which may involve actions such as tax evasion or false accounting. As a result, the illegal activity of money laundering is now recognized as potentially practiced by individuals, small and large business, corrupt officials, members of organized crime (such as drug dealers or the Mafia) or of cults, and even corrupt states or intelligence agencies, through a complex network of shell companies based in offshore tax havens.

The increasing complexity of financial crime, the increasing recognised value of so-called "financial intelligence" (FININT) in combating transnational crime and terrorism, and the speculated impact of capital extracted from the legitimate economy has led to an increased prominence of money laundering in political, economic and legal debate. In many jurisdictions, money laundering is seen as an "activity based" offense.


example: You are a drug king pin and you make millions a year slinging rocks. How do yo make the money you make appear legit. Open a casino. Funnel all of your drug money into the casino and then no one can question where the money came from. No one keeps track of how much money John Doe spends at a casino besides John Doe. That makes the amount of money you put into the casino endless because you do not keep track of what every one spends. Just watch the movie "Rush Hour 2".

Answer 2

where u take money that has come ur way illegally ( selling drugs, etc) and lets say run it through a or many pokie machines. When all the original money is gone and the rest is your "winnings" therefore it has been acquired legally or successfully laundered it.

*This is only a simple explaination.*

Punishment could very well include jail time ( the police would need evident to support why u needed to launder the money) so unless u know what ur doing pls dont attempt, even then its a bit iffy.

Answer 3

Imagine you made a LOT of money doing something illegal like selling drugs. It would be hard to spend that money because people would wonder where you got it, right? They'd ask questions about how you're paying for everything.

Money laundering takes "dirty money" and funnels it through a legitimate business to make it look like you earned the money that way. Say, open a small business and report your money as profit from that business. That way, nobody asks too many questions.

Answer 4

Money laundering is the taking out of money in large amount from a country to another country. Money usually come from illegal sources. This crime is punishable by death if the amount is very large because it is an economic sabotage.

Answer 5

It means that you were involved in some illegal activities then you have some money that can be traced to those illegal activities.

So you have to do some 'laundering' such that the money cannot be traced to those activities. For example, you know someone striked lottery, buy the tickets from them at premium to justify your large cash flow.

Answer 6

money laundering is when you get money from an illegal action and investing it or depositing into a bank or company. then you withdraw it later and then its clean. its a federal crime.

Answer 7

To put it in simple terms- Converting Black money into White.

Answer 8

changing illegal money from illegal businesses to legitimate money.