Method of Money Laundering Essay Example for Free

Method of Money Laundering probeStructuring depositsThe Bank Secrecy Act of 1970 requires banks to report any deposits exceeding $10,000.01. This is not a problem for closely of us, but it is a big barrier to bills-laundering criminals looking to rid themselves of whatso constantly(prenominal) cumbersome currency. Launderers will charter low-level lackeys to make multiple small deposits, either on different days or at various branches on the same day to work around this pesky law that attempts to deter coin laundering, It is a complex, time-consuming way to launder money, and one that has been rendered even more(prenominal) difficult by computer algorithms that look for suspicious deposit behavior and raise an red flag when one is found. see morespeech on money for aslBanksFar more exciting and global in the practice of money laundering is the use of offshore and overseas banks. Nations like the Cay humanness Islands, Bahamas and Panama are very fit to criminals looking to legitimize their cash these nations are unre fixeded with regards to burdensome banking laws and anti-laundering procedures, which ultimately helps hide the launderers behind strict veils of secrecy. Opening accounts in a number of these offshore accounts allows launderers to move their money around and create a nearly impenetrable defense against curious investigators.Some countries (China and Pakistan among others) gravel a history of well-established underground banks that have been accepting deposits from sketchy clients for centuries. They legally operate unwrapside of the mainstream banking system and outside the control of the government. There is ofttimes no paper work, just the reputation of the principals involved.Shell companiesEnterprising criminals looking to legalize their cash hold end set up various companies that exist for the sole purpose of money laundering. These so-called shell companies frequently offer some sort of service that can easily be fudged an d usually accepts cash as payment when doing legitimate business (beauty salons and trades like plumbing are commonly used). The repellent money is funneled into the company, make to look like legitimate income with fake invoices and receipts and then deposited into the shell companys accounts as clean, wonderfully spendable cash money.Using these shell companies to gruntle one step ahead of the man is a shell game of its own. Forensic accountants can strip away layers of deceit and reveal the laughable proceeding below, which means that only true criminal masterminds with really good accountants should consider this as a laundering option.Legitimate businessesCriminals looking to clean their money can also be good integrated citizens by investing in legitimate business. Cash-rich businesses like bars and strip clubs are the most common, with the dirty money seeded in with the legitimate revenue and squirreled away in the business bank accounts. The safer order is to use the di rty money to buy the services offered by the legit businesses, but this necessitates lots of fake invoicing and troublesome number fudging and you can safely assume that most criminals choose the easy money of crime out of laziness, which makes this a decidedly unattractive alternative when looking for money-laundering options.GamblingWith so many cash transactions taking place every day, casinos have become highly valuable money-laundering institutions because chips can be purchased anonymously with dirty money and after a period of time they can be cashed back in and turned into clean money. Even if the casino follows the letter of the law and asks for ID to record the transaction, the Feds are powerless to prove the money was ever dirty. Global criminal enterprises can even ask that the winnings be used as credit at the casinos overseas franchises.With some games offering as overmuch as 93% return on your money, certain criminals are willing to chance some losses and turn their illicit cash into legitimate money by actually gambling with it. whizz particularly popular method involves two associates at the roulette table. While one bets a hard amount on red, the other places a similar amount on black. Provided neither zero nor ingeminate zero come up, one side doubles the money and turns it legit at the same time. However, sophisticated watch and casino security have limited this scheme in recent years.Down at the track, some crafty launderers will put the word out that they are willing to buy winning tickets at a premium. They then cash in the tickets as clean money and pass the bonus of clean the money onto the unsuspecting legitimate gambler, who is usually so stunned at their good fortune that they cannot measure their predicament.No money, No problemsIt is an enviable position that many would like to be in having so much cash that you do not know what to do with it. However, cleaning money is harder work than earning it. Criminals have to stay one step ahead of the law and they constantly run the risk of losing their cash to shady launderers or eagle-eyed cops. Often, it is not the drug dealing or the extortion that gets these law breakers busted, it is their attempts at concealing the money. So, if you ever decide to get in The Game, watch what you do with your money.