How does money laundering work?

[Accipiter22]

Say I make 100,000 in a month from selling coke. Now I have a legitimate business I run as well. How do I launder that 100,000? Fake receipts from my business to make it look like the legit end is more profitable than it actually is?

 

[isekii]

I'd probably bury it somewhere and leave it there till I retire. Take some every now and then till I need to use it

 

[6000SUX]

Google, Wikipedia, etc.

 

[KingGheedora]

Good evening, sir. My name is Steve. I come from a rough area. I used to be addicted to crack, but now I'm off and trying to stay clean.

That is why I am selling magzine subscriptions.

And I was hoping you could help me out--

 

[AnonymouseUser]

Originally posted by: Accipiter22
Say I make 100,000 in a month from selling coke. Now I have a legitimate business I run as well. How do I launder that 100,000? Fake receipts from my business to make it look like the legit end is more profitable than it actually is?

I have already contacted the IRS and FBI. Expect a visit soon.

 

[XZeroII]

You put it in your pants and run your pants through the washing machine.

Now your money has been laundered.

 

[moshquerade]

You're asking this question for "a friend" right?

 

[darkeneddays]

Originally posted by: KingGheedora
Good evening, sir. My name is Steve. I come from a rough area. I used to be addicted to crack, but now I'm off and trying to stay clean.

That is why I am selling magzine subscriptions.

And I was hoping you could help me out--

I thought the same thing when I read the title...

 

[Stunt]

Been watching Office Space have we?

 

[preslove]

You open up a resturaunt or store and use the cash as fake purchases. You just inflate the earnings of the business. This is the common way for low to mid-level drug dealers to launder money, there are bigger scale operations that a really complicated.

oh, and repost.

 

[Shawn]

Originally posted by: KingGheedora
Good evening, sir. My name is Steve. I come from a rough area. I used to be addicted to crack, but now I'm off and trying to stay clean.

That is why I am selling magzine subscriptions.

And I was hoping you could help me out--

Hahahaha!

 

[killface]

That's about the safest way to do it. As long as you have a low-overhead, potentially high-profit business and aren't bringing in too much money from the illegal activities, you can do it this way. If you need to launder LOTS of money, you'll need a *friend* at a bank. One thing you can do is go to the bank, take out a loan for, say $1 mil. For loan collateral, you put up, say $1.2 mil in cash. You default on the loan, the bank keeps the cash, and you still have your, now legal, $1 million loan.

There are lots of other ways too. It mostly depends on the amount you need to rinse.

 

[Corporate Thug]

http://en.wikipedia.org/wiki/Money_laun...ng#A_brief_history_of_money_laundering

 

[sniperruff]

1) get a lot of dirty money
2) pick a suitable location. places with drive-through's are the best
3) get some tide and snuggle from the supermarket
4) ...
5) profit!

 

[spidey07]

Originally posted by: Accipiter22
Say I make 100,000 in a month from selling coke. Now I have a legitimate business I run as well. How do I launder that 100,000? Fake receipts from my business to make it look like the legit end is more profitable than it actually is?

You open a laundry mat.

That way you take the money gained illegally and pump it into the laundery mat. I believe this is where the term came from.

 

[her209]

Vegas baby... Vegas!!!

 

[thehstrybean]

Originally posted by: KingGheedora
Good evening, sir. My name is Steve. I come from a rough area. I used to be addicted to crack, but now I'm off and trying to stay clean.

That is why I am selling magzine subscriptions.

And I was hoping you could help me out--

Hahaha...I :heart: Office Space!

 

[kingtas]

Any deposit over ten grand has to be reported to the feds by law, is what I have heard.

Cash is king.

 

[mchammer]

"I don't know anything about money laundering, I'm really an unemployed software engineer."

 

[imported_LoKe]

Originally posted by: killface
That's about the safest way to do it. As long as you have a low-overhead, potentially high-profit business and aren't bringing in too much money from the illegal activities, you can do it this way. If you need to launder LOTS of money, you'll need a *friend* at a bank. One thing you can do is go to the bank, take out a loan for, say $1 mil. For loan collateral, you put up, say $1.2 mil in cash. You default on the loan, the bank keeps the cash, and you still have your, now legal, $1 million loan.

There are lots of other ways too. It mostly depends on the amount you need to rinse.

How the hell could you put up $1.2 mill in cash, if you're taking out a $1 mil loan? How would that make any sense?

 

[yosuke188]

Look it up in a dictionary

 

[FelixDeCat]

The Cayman Islands, Bermuda, and the Bahamas, for example, do not have any income taxes. Other jurisdictions, such as Jersey, Liechtenstein, and Hong Kong, have low-rate, flat tax systems. Equally important, these nations and territories usually have "source based" or "territorial" tax systems, meaning that the jurisdictions do not tax income earned outside their borders and do not help other nations tax income that is earned inside their borders.

 

[FelixDeCat]

Originally posted by: kingtas
Any deposit over ten grand has to be reported to the feds by law, is what I have heard.

Cash is king.

Where have you been? 5 big ones generate a SAR now. You would already be in jail.

 

[spidey07]

Originally posted by: FelixDeKat
The Cayman Islands, Bermuda, and the Bahamas, for example, do not have any income taxes. Other jurisdictions, such as Jersey, Liechtenstein, and Hong Kong, have low-rate, flat tax systems. Equally important, these nations and territories usually have "source based" or "territorial" tax systems, meaning that the jurisdictions do not tax income earned outside their borders and do not help other nations tax income that is earned inside their borders.

Which is why you incorporate in jersey.

 

[Slacker]

Originally posted by: FelixDeKat

Originally posted by: kingtas
Any deposit over ten grand has to be reported to the feds by law, is what I have heard.

Cash is king.

Where have you been? 5 big ones generate a SAR now. You would already be in jail.

Felix is correct, to my knowledge it has been $5k for more than 5 years now.