The Different Ways Money Laundering Works


Let’s say you’ve given up your law-abiding
lifestyle to pursue a life of crime- you’ve just made your first big score, perhaps from
selling drugs, taking a bribe, or other corrupt acts. you can’t just spend it or deposit it in
your bank account without attracting attention from authorities. That pesky
money trail might serve as evidence of the crime you committed. So you need to
get that dirty money clean. There are three steps to any money laundering
scheme. First up, placement, where funds are moved from
direct association with the crime, then, layering or disguising the money trail
to foil any authorities, and finally, integration, where the funds are once
again available to spend without worry of being caught. So what are your options? One option is forming a shell company. It’s fairly easy and there are plenty of
law firms who can help. It should take them only a bit longer than signing up
for a new email address. Launderers may turn to historic tax havens
like Switzerland, or places where you can set up anonymous shell companies like
the Cayman Islands or the U.S. states of Delaware and Nevada. Once a shell company is established, make up some fake transactions for
goods or services that you pay for with your dirty money. Suddenly that dirty
money looks legitimate. It also helps to find people who work in
banking who don’t care if you’re a shady client. After the fall of the Soviet
Union launderers sought out weak spots throughout Europe where oversight was
poor. Billions have been funneled through banks in Cyprus, Malta and the Baltic
nations of Estonia and Latvia If you prefer to use the stock market
you can try a technique called mirror trading. In this method you use your
money to purchase shares. And then you sell shares worth the same amount
somewhere abroad. The trades functionally cancel each
other out, but you’ve successfully turned your rubles into clean euros. A similar
method is a back-to-back deal, where, say, a Russian takes out a loan in one country,
say Austria, that’s guaranteed by a deposit of dirty money back home in Russia. She then defaults on the loan, the bank in
Austria seizes the Russian deposit, but she still ends up with the proceeds of the loan,
no strings attached. Or maybe you like to visit casinos. Another method of money
laundering is mixing dirty money in with clean. Cash businesses like restaurants
and casinos are particularly attractive to launderers. A common scheme is to buy
a bunch of casino chips, make a few small wagers, then cash everything else out as
winnings. Or, you can just own the whole casino. Macau has been beset by
laundering schemes despite China’s repeated attempts to stop it. Or finally,
there’s smurfing- though you won’t need anything blue to get your green. With
this one you hire a bunch of associates called Smurfs to individually deposit
small chunks of the large haul you’re trying to cleanse, in different accounts,
in different places. Beware! US banks are required to report
any transaction over $10,000, so you might need to find a lot of Smurfs. So
you can see there are lots of ways to launder money. Unfortunately for you, there’s no guarantee
that you won’t get caught.

100 thoughts on “The Different Ways Money Laundering Works

  1. lf l spend $1 million at my shell company for goods and services, where did l get that $1 million from?
    Oh that's right, drugs !

    A lot of talk about Russia? ls Rachel Madcow around?

    M A G A !

  2. Or start a charity and make large anonymous donations to said charity.
    Donate around 1% like most charities and overpay yourself and 'staff'.

  3. My preferred method is through a stock broker or trade directly in derivates market.. learned that during my internship days in a chartered firm.

    But ofcourse, if you're dealing with an extraordinarily large amount, you have to involve a tax haven country, some ponzi companies and a bunch of fake paper transactions..

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  5. not sure how you're supposed to deposit the black money on the russian bank (the get the credit cleaned after you default). or the money to cayman island, after you deposit to estonia/malta/lativa/cyprus
    basically these 5 countries are implied to not care if you have black money? so why do you need to clean them anyway? …

  6. if you have subtitles on, at the end of the part they talk about cashing chips in Casinos, the subtitle maker subtly adds 'or, you can own the whole casino'

  7. Forgot Ireland disappeared, cause it’s defiantly not on that map. Cheers men from the extinct country that once lay beside the UK. The waters great by the way 👍

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