2007-07-11 11:40:13 · 7 answers · asked by Anonymous in Travel ➔ Asia Pacific ➔ Singapore
Haven't you seen Office Space?
Anyway, money laundering is when you conceal the source of money (usually obtained illegally) and make it look like you obtained it through some legal transaction or operation.
This is usually in the form of a legal business operation - usually overseas or in a foreign country, where oversight is poor - or in a foreign bank account to cover for the illegal operation.
Let's say you sell drugs illegally and make a lot of money at it. You have to set up some kind of front (like a legitimate business) or set up an account in an off-shore bank account (like a Swiss bank account, which has only a number as the accountholder's information). You then transfer the illicit funds to the legal business or foreign accout.
Usually, money laundering involves many transfers, making it difficult to definitely track where it originally came from. The theory is, when the money is transferred back to you, there is no direct trail to the original illicit activity.
The original illegal source of the money is effectively "laundered" out of the money.
2007-07-11 11:53:06 · answer #1 · answered by Paul in San Diego 7 · 0⤊ 0⤋
Money laundering is hiding the origin of money, generally through a business or financial institution. So, say you are making wads of cash selling rubber ducks, and you don't want the government to know. You could open a restaurant that only deals in cash, and claim that you are making all that money from the restaurant.
Note that money laundering is a fantastic way to get free room and board in most federal prisons.
2007-07-11 18:44:00 · answer #2 · answered by largegrasseatingmonster 5 · 0⤊ 0⤋
Taking money that is obtained illegally and cycling it through a legal source.
For example, you take drug money and put it into a business.
2007-07-11 18:43:12 · answer #3 · answered by mel s 6 · 0⤊ 0⤋
http://money.howstuffworks.com/money-laundering.htm
2007-07-11 18:43:51 · answer #4 · answered by stratsandlespauls 6 · 0⤊ 0⤋
stolen, drug or any thing else money is put through the banking system through legitamate companies/people. that money is then put through the system and when you draw it out its clean. simpliest way i could put it.
2007-07-11 18:44:01 · answer #5 · answered by pfc123darkknight 5 · 0⤊ 0⤋
LOL, your question reminds me of Office Space.
2007-07-11 18:45:34 · answer #6 · answered by heather v 2 · 0⤊ 0⤋
cleaning you money at a chinese laundry
2007-07-11 18:51:32 · answer #7 · answered by Anonymous · 0⤊ 0⤋