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Money Laundering

Money Laundering is the illegal movement of money generated by illegal activities into legitimate channels in order to disguise the real source of the assets and make it appear as if it has a legitimate source. This process "launders" the money, making it appear
clean as opposed to coming from the real, “dirty”, source.


Money laundering is commonly known by the traditional technique of using a “front”, a real and legitimate business associated with the launderer. The “dirty” money is placed into the legitimate business, layering then conceals the actual source of the money by making transactions and “cooking the books”, and ends with integration i.e. the withdrawal of the money from the legitimate account.
Another method which is commonly used by money launderers involve investing in commodities such as gold and diamonds which can be moved across jurisdictions, and using shell companies discreetly investing in real estate or other commodities.


In today’s modern world, money laundering has also become a cybercrime; electronic money laundering. It is made possible through the discretion of online banking, wire transfers, P2P transfers and cryptocurrencies, using fronts such as gambling and gaming websites. Whereas banks are required to report suspicious activities such as large money transfers, online the signs of illegal transfers and money laundering are very difficult to detect.

 

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