00:00How does money laundering work?
00:02Let's say someone has $100,000 of income from a not-so-legal business.
00:06They can't deposit it into their bank account or use it for any big purchases
00:10without raising suspicion and triggering red flags for law enforcement and the bank.
00:13So, how can they use this money?
00:15Well, they would need to launder it.
00:17The first step in money laundering is placement,
00:19which is where the illegal funds are introduced into the financial system.
00:22A common method criminals use is funneling the money into a legitimate cash-based business,
00:26such as a restaurant or a barbershop,
00:28where they would mix the illegal money with the business's legitimate earnings.
00:31The second stage is layering,
00:33where the money is moved through a series of financial transactions to hide its origin.
00:37This could involve transferring funds between different bank accounts,
00:40transferring money between different countries, or using shell companies.
00:43Finally, the third stage is integration,
00:45where the laundered money can be reintroduced into the economy as legal funds.
00:49This might involve purchasing real estate, luxury goods, or investing in other businesses.
00:53Once the money is successfully integrated, the criminal can use it without raising suspicion.
00:57So, here's a small step in the position.
Comments