Money laundering is a complex process that involves the use of shady accounting methods to integrate dirty money into the legitimate economy. A common way to do this is by setting up a legal business and blending illicit funds with legitimate funds. This makes it difficult to tell the difference between the two. In some cases, the money is split into smaller chunks and deposited into different bank accounts by a single person over a long period of time.
In some cases, money launderers inject dirty money into the financial system to conceal their identity. This can be done through the use of anonymous corporations or through the use of a professional middleman. This allows them to disperse their money over multiple transactions and different countries. Money laundering methods can include the use of tradable assets, such as property.
Money laundering can lead to jail time for those involved. Those most at risk are bankers, lawyers, and accountants. However, even company leaders may be involved in money laundering activities without realising it. In addition, those involved in the process may also be subject to blackmail or threats. It is important to know the details of the process of money laundering to avoid being a victim. For advice on KNOW YOUR CUSTOMER, go to www.w2globaldata.com/regulatory-compliance-solutions-and-software/know-your-customer
The first stage of money laundering is called ‘placement’. The dirty money is deposited in financial institutions and disguised so that it can be used for legitimate purposes. Money launderers use various techniques to make this process look as legitimate as possible. In some cases, they may even take the dirty money to a country with less stringent money laundering laws. These methods make it difficult to trace where the money actually came from.