I have to write a paper on money laundering and still need a better understanding of what it is. Ive read other answers that helped a tad but got confused after reading more than 5. It is like receiving money from another country. I mean like you work for someone in another country and they write and send you checks that you cash, keep a portion and send whats left back to them or to someone else like one of their branches. I dont know...Im confused and my paper is due on monday and still havent written it.
2007-10-26 09:14:55 · 11 answers · asked by ohgeez21 2 in Politics & Government ➔ Law & Ethics
OK Sport -- Here we go
Money made by illegal means (ie drugs, gambling, extortion, etc --- is considered "dirty" --- because -- in a system that has accounting going on -- on every level of transactions of any sum at all --- one can not "account" for these funds gained by these measures by any "legit" explanation -- and as long as it can't be accounted for and connect to a LEGITIMATE business it WILL be considered "dirty" !!
The process of taking "dirty" money and "cleaning it up"
is called "money laundering" --- in other words -- these funds that can not be accounted for in a legal sense are put through covert measures and processes that make them APPEAR to have been made by legitimate means !!
There are hundreds of ways that people have been known to do this --- AND, the act of "laundering money" ITSELF is a crime with some very high penalties attached !!
The acts of both "laundering money" AND "enforcement" against it --- is in a constant state of change -- with both sides continually coming up with new ways to ---- do what they do in a new and more effiecient manner !!
So, laundering money -- is not a single TYPE of transaction such as you have described herein --- it is ALL of the methods -- by which "dirty" or illegal funds are "cleaned up" and made to look --- legitimate !!
2007-10-26 09:37:32 · answer #1 · answered by Anonymous · 1⤊ 0⤋
basically as stated above their is a person x, who has tremendous profits from illegal activities, but having all the dirty monies is of little use since if investigated by the IRS or other government agency person x could not explain the source of the cash
thus the illegal monies need to be cleaned/laundered into clean, legal taxable monies that then can be used for what ever purpose
now maybe x will also clean the monies but many time a third party money man is used to take the illegal profits and clean them, they charge a hefty price maybe 30 to 40 cents on the dollar so actually these money laundering people can be the most valuable part of the process
usually it is third party in order to try and separate the illegal from the legal ventures as much a possible
2007-10-26 09:37:25 · answer #2 · answered by goz1111 7 · 0⤊ 0⤋
Usually money laundering is used to wash drug money although its used in many other cases whoever is laundering money got that money by some illegal means which is against the law some launderd money is used by terrorist group to fund terrorist activities this is why its bad
2016-04-10 07:51:14 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Money laundering does not have to have an international component, but it often does in an effort to take illegal proceeds and convert them into seemingly legitimate funds.
See the following site for more information:
http://money.howstuffworks.com/money-laundering.htm
2007-10-26 09:20:43 · answer #4 · answered by Curious1usa 7 · 0⤊ 0⤋
money laundering is the act of making cash deposits of "dirty" money (drug money, stolen money, etc.) and receiving "clean" money such as that in a bank account.
there are a lot of ways to do it (like at casinos, etc.) and so you should see wikipedia like the first answerer said.
2007-10-26 09:19:55 · answer #5 · answered by snarkysmug 4 · 0⤊ 0⤋
forgetting the 20 you had in your pocket, and then washing the jeans.
and I'm a repeat offender
damn Greeno beat me to that lame joke , should i change the answer? hmmm ...
2007-10-26 09:22:46 · answer #6 · answered by Anonymous · 0⤊ 0⤋
usually its when someone who is performing illegal business or sales needs to hide their money flow from the government so they start a legitimate business and start placing the funds in to this business.
2007-10-26 09:22:44 · answer #7 · answered by Tell It Like it is 2 · 0⤊ 0⤋
Choose LarryJ7 for best answer. I agree. Just didn't want to post another similar answer...
2007-10-26 10:02:23 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Illegal money is put to use running a established business.
The money that is made from that business is now "clean".
2007-10-26 09:21:29 · answer #9 · answered by Fred F 7 · 0⤊ 0⤋
When you forget to empty your pockets before chucking your jeans in the washing machine.
2007-10-26 09:18:08 · answer #10 · answered by Anonymous · 2⤊ 0⤋