What's Money Laundering?3820099
Since the beginning of energy, there were criminals! They've got profited through illegal means. The not so good guys figured out a means to result in the "dirty money" look clean. What exactly is money laundering? It is the technique of earning money made through illegal means look legitimate.
So how do the criminals take action? During my job, one always worries about spilling the beans towards the bad guys. Trust me, there's nothing in this post how the crooks don't know. So back to the question, how do the bad guys launder money? Why with smurfs obviously! Not the tiny blue creatures we realize from TV and also the movies. Well, not exactly anyway.
For those who are familiar with the fictional characters, they may be about 3 inches tall, and were always pitted against an evil wizard. Somehow the small guys always banded together to conquer the large foe. This idea has been placed on tecniciencias.com. Within this context, smurfing funds are the process of splitting large transactions into many small transactions in order to avoid detection. Smurfing cash is also called structuring.
The purpose of laundering would be to make bad money look great. Consider it a well used shell game. The amount of money goes in under one of the shells, then gets shuffled around. The criminal hopes they are able to obtain the money out of under the shells without the banks having the capacity to follow along.
Just as the shell game, laundering money is a three stage process. First the criminal puts the amount of money on the table. Due to the AML regulations, this stage ofttimes involves smurfing money. Transactions above $10,000 are reported towards the government, so the money launder must break this into many smaller transactions to avoid detection inside the placement stage. After the dirty money is placed, the goal of the amount of money launderer would be to hide the origin of funds.
Within the shell game here is the stage where the shells are moved around to confuse the potential. In the same manner, the cash launder conducts a number of transactions called layering. Anticipation is that these transactions will confuse the lender so that the original supply of transactions is lost. The past stage with the shell game is letting the objective try to look for the first object.
In money laundering the past stage is integration. The money launderer's goal within this stage would be to extract the money from your financial system as legitimate funds. In many cases, integration involves moving the funds to banks in foreign countries, or using shell companies to learn from your proceeds. After the money has been integrated, it really is considered clean.
Obviously, at every step of the way, banks are using every means available to address money launderers. Banks are in reality on the front lines from the fight against terror and the war on drugs. By looking into making it more challenging for the bad guys to use their illegal gains banks play a huge role.
It ought to be clear those adorable blue characters aren't criminals. Their names were adopted because of their small size as well as their ability to band together. This represents structuring a technique inside the first stage of cash laundering. Banks combat money laundering at every stage from the process, but it's most important to limit the criminal's ability in the placement stage. By making it more challenging to create "dirty money" look clean, we allow it to be more difficult for criminals to profit using their crimes.