Money laundering is the term used to describe the act of taking illegal money from source A and making it look like it came from source B, a legitimate, legal source. Criminals make the proceeds of crime appear to be legitimate in order to get away with their crime without raising suspicion. Until they do this they are unable to use the money without authorities tracing it back to their crime.
The proceeds of crime refer to an asset that is linked to crime. An example of this could be a car bought with stolen money, this makes the car criminal property, and therefore becomes a proceed of crime.
The term "laundering" comes from the fact that criminals disperse the money gained from the crime, by spreading it out, investing in businesses, dividing it up into many bank accounts and so on. These actions make it more difficult for the authorities to trace the money back to the crime.
5 Signs of Money Laundering to Look out for:
1. Reluctance to Provide Information
2. Incomplete or Inconsistent Information
3. Irregular Money Transfers and Transactions
4. Complex Group Structures
5. Negative Reviews
The proceeds of crime refer to an asset that is linked to crime. An example of this could be a car bought with stolen money, this makes the car criminal property, and therefore becomes a proceed of crime.
The term "laundering" comes from the fact that criminals disperse the money gained from the crime, by spreading it out, investing in businesses, dividing it up into many bank accounts and so on. These actions make it more difficult for the authorities to trace the money back to the crime.
5 Signs of Money Laundering to Look out for:
1. Reluctance to Provide Information
2. Incomplete or Inconsistent Information
3. Irregular Money Transfers and Transactions
4. Complex Group Structures
5. Negative Reviews
