What's Money Laundering?3317155
Forever of energy, there were criminals! They've got profited through illegal means. The not so good guys figured out a method to result in the "dirty money" look clean. What's money laundering? It's the technique of making money made through illegal means look legitimate.
Just how do the bad guys get it done? Within my line of work, one always worries about spilling the beans to the criminals. Count on me, you'll find nothing in this post how the bad guys don't already know. So to the question, how do the not so good guys launder money? Why with smurfs obviously! Not the little blue creatures we realize from TV as well as the movies. Well, not really anyway.
If you are familiar with the fictional characters, they may be about 3 inches tall, and were always pitted against an evil wizard. Somehow the tiny guys always banded together to beat the large foe. This idea has been put on la página. Within this context, smurfing money is the whole process of splitting large transactions into many small transactions in order to avoid detection. Smurfing cash is also known as structuring.
The aim of laundering is always to make bad money look nice. Think of it as a well used shell game. The cash gets into under one of many shells, then gets shuffled around. The criminal hopes they are able to obtain the money out of underneath the shells with no banks being able to follow along.
Similar to the shell game, laundering cash is a 3 stage process. First the criminal puts the cash available. Due to the AML regulations, this stage ofttimes involves smurfing money. Transactions above $10,000 are reported to the government, and so the money launder must break this into many smaller transactions to prevent detection in the placement stage. Following the dirty cash is placed, the goal of the money launderer would be to hide the source of funds.
In the shell game this is actually the stage the location where the shells are moved around to confuse the mark. In the same manner, the cash launder conducts a number of transactions called layering. The hope is always that these transactions will confuse the financial institution so that the original source of transactions sheds. The past stage with the shell game is letting the potential try to find the first object.
In money laundering the past stage is integration. The cash launderer's goal within this stage would be to extract the amount of money from your economic system as legitimate funds. Most of the time, integration involves moving the funds to banks in foreign countries, or using shell companies to profit from the proceeds. Once the money has been integrated, it's considered clean.
Of course, at every step of the way, banks are using every means available to battle money launderers. Banks are in reality around the front lines with the fight against terror as well as the war on drugs. Start by making it more challenging for the criminals to make use of their illegal gains banks play a huge role.
It should be clear those adorable blue characters aren't criminals. Their names were adopted because of their small size in addition to their capacity to band together. This represents structuring an approach within the first stage of money laundering. Banks combat money laundering at all stages from the process, but it is most important to limit the criminal's ability at the placement stage. By looking into making it more challenging to produce "dirty money" look clean, we make it more challenging for criminals to profit using their crimes.