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Money Laundering Methods

by SharifaMcFarlane in Crime, January 20, 2011

Money laundering is a criminal activity which is carried out all over the globe.

Money laundering is used to hide illicit profits from criminal activities.

Money laundering laws are used to limit the ways and means by which persons can launder money. Persons will usually try to work their way around money laundering laws, or change their behavior to reduce the likelihood of banks reporting money laundering. For example, if the limit on cash transactions that can be done without arousing suspicion is $10,000 people will break a large amount of money into sums that are less likely to arouse suspicion.

Image by / // / via Flickr

Some money laundering schemes used by organized crime are fairly well known. However, sometimes, persons who are involved in laundering money are completely unaware that they are a part of the process.

In cuckoo smurfing, legitimate overseas money transfers are replaced with illegitimate earnings. Organized crime using the “cuckoo smurfing” money laundering scheme, can launder money through the accounts of unsuspecting persons and legitimate firms while doing it in such a manner that they are kept completely unaware.

There are many more money laundering methods which are regularly used.

Persons may use many different branches or agencies to avoid detection. Usually, this happens within a narrow time frame, such as a few days, or a few hours. A team of persons may do the transactions.

 

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Image by Mike Licht, NotionsCapital.com via Flickr

Money laundering is less noticeable at busy times of the year, such as during the holidays. To take advantage of this some persons involved in money laundering wait until the busiest times of the year to do transactions. Persons who are laundering money may also wait until close to closing time before entering a bank to do their transactions.

Persons will use cash whenever they are purchasing government bonds, bank drafts, or other financial instruments. To avoid this type of money laundering, some banks and investment houses do not accept cash.

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User Comments

  1. Michal Dorcak

    On January 20, 2011 at 7:44 am


    Interesting information written in reader friendly way. Easy to understand.

  2. UncleSammy

    On January 20, 2011 at 7:49 am


    This is done well,Nice share , see you around

  3. Francois Hagnere

    On January 20, 2011 at 8:01 am


    Very well said, thank you Sharifa for this interesting post.

  4. CHIPMUNK

    On January 20, 2011 at 8:06 am


    great share

  5. SharifaMcFarlane

    On January 20, 2011 at 8:35 am


    Thanks Michal ;)

  6. SharifaMcFarlane

    On January 20, 2011 at 8:37 am


    Hi UncleSam.

  7. SharifaMcFarlane

    On January 20, 2011 at 8:38 am


    Glad you liked it Francois.

  8. SharifaMcFarlane

    On January 20, 2011 at 8:40 am


    Thanks Chipmunk!

  9. webseowriters

    On January 20, 2011 at 8:51 am


    Very interesting

  10. john smither

    On January 20, 2011 at 8:54 am


    Interesting article on this method of illegally transferring money.

  11. papaleng

    On January 20, 2011 at 9:29 am


    very good explanations on how money laundering works.

  12. yes me

    On January 20, 2011 at 10:23 am


    Another great one Sharifa cheers

  13. magicdarts

    On January 20, 2011 at 1:45 pm


    fascinating insight! The only money “laundering” I’ve ever done was when I left a five pound note in my pocket when I put it in the washing machine!!

  14. LOVELYHONEY

    On January 20, 2011 at 3:20 pm


    GR88888888888888888

    You don’t read me because I don’t read you? Of course I do

  15. CA Johnson

    On January 20, 2011 at 6:54 pm


    This is very interesting. Thank you for letting us know about money laundering. I didn’t know any of this so thanks for sharing.

  16. LCM Linda

    On January 21, 2011 at 2:34 am


    Interesting topic. I’m unfamiliar with this subject, glad to learn more about money laundering.

  17. SharifaMcFarlane

    On January 21, 2011 at 7:56 am


    Thanks Webseo.

  18. SharifaMcFarlane

    On January 21, 2011 at 8:13 am


    Hi John,
    Thank you.

  19. SharifaMcFarlane

    On January 21, 2011 at 8:18 am


    Good to hear that Papaleng.

  20. SharifaMcFarlane

    On January 21, 2011 at 8:28 am


    Cheers Matt ;)

  21. albert1jemi

    On January 21, 2011 at 8:34 am


    good post.

  22. Starpisces

    On January 21, 2011 at 9:09 am


    thanks Sharifa, this is something new to me too… very good info.

  23. Ruby Hawk

    On January 21, 2011 at 10:40 am


    thanks, I learned some things about money laundering that I didn’t know.

  24. aleah

    On January 21, 2011 at 10:49 am


    A lot of people do this.

  25. Jimmy Shilaho

    On January 21, 2011 at 11:57 am


    This is a very informative entry, a well thought out piece.

  26. jemialbert

    On January 21, 2011 at 1:51 pm


    gud share

  27. SharifaMcFarlane

    On January 21, 2011 at 7:04 pm


    @ Magicdarts
    ;-) It’s nice to find them fresh and clean.

  28. SharifaMcFarlane

    On January 21, 2011 at 7:12 pm


    @ LH,
    Likewise

  29. SharifaMcFarlane

    On January 21, 2011 at 7:13 pm


    I’m glad you found it informative C.A.

  30. Wizard Brown

    On January 21, 2011 at 9:51 pm


    Very interesting. I would like to see you write more on this subject

  31. SharifaMcFarlane

    On January 22, 2011 at 2:22 am


    Glad it was informative Linda.

  32. gaby7

    On January 22, 2011 at 5:21 am


    I have heard quite a lot about this crime-I guess drug dealers are the most culpable here!

  33. gaby7

    On January 22, 2011 at 5:31 am


    I have heard quite a lot about this crime-I guess drug dealers are the greatest culprits here!

  34. nz2rdfox

    On January 22, 2011 at 11:54 am


    Money launderers..we got lots of em in our country:)

    Thanks for an informative share:)

  35. doddid

    On January 23, 2011 at 6:31 am


    Thanks for sharing !

  36. wonder

    On February 1, 2011 at 2:04 am


    This is really informative and does generate awareness.Payment through checks is valid.

  37. SharifaMcFarlane

    On February 5, 2011 at 3:31 am


    Thanks Albert.
    Thanks Star.

  38. SharifaMcFarlane

    On February 5, 2011 at 3:32 am


    You’re welcome Ruby.
    Quite a few do, Aleah.

  39. SharifaMcFarlane

    On February 5, 2011 at 3:34 am


    Thank you for the kind words Jimmy.
    Thanks Jemi.

  40. SharifaMcFarlane

    On February 5, 2011 at 3:37 am


    Good to know you found it interesting Wizard Brown.
    Quite a bit of it is drug-related Gaby.

  41. SharifaMcFarlane

    On February 5, 2011 at 3:40 am


    It is quite pervasive Nz.
    You’re welcome Doddid.

  42. SharifaMcFarlane

    On February 5, 2011 at 3:42 am


    Thanks Wonder.

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