Money laundering is the processing of criminal proceeds to disguise their illegal origin. This process enables the criminal to enjoy profits without jeopardizing their source. The UN suggests between 2% and 5% of the global GDP is laundered each year.
In money laundering, smurfing refers to a fraudulent practice of breaking a larger amount of money into numerous smaller portions. By using smurfing, reporting thresholds meant to identify suspicious transactions are avoided.
Shell companies and trusts are sophisticated tools frequently used in larger money laundering schemes, providing a complex disguise. Shell companies exist only on paper and have no real operations or assets.
Round tripping is when funds are sent on a “trip” to various accounts, individuals, shell companies, and countries with low regulatory standards. When it is eventually sent back to its owner it has a veneer of legitimacy. The idea is to create a complicated path that’s difficult to follow.
Cryptocurrency has replaced cash as king for criminal activity. Virtual currencies like Bitcoin are not uniformly regulated making them an easy vehicle to launder criminal proceeds. Crypto crime hit a record $20 billion in 2022.
Reselling assets is a common strategy. Cash buys big ticket items which can be resold. Real estate is the largest and most common but luxury cars and designer goods are also resold to launder cash.
Gangsterism Out 