How does money laundering work?

[her209]

Originally posted by: 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.

What's a SAR? I recently deposited $5000+ in cash into my bank account and didn't have to do anything.

 

[fitzov]

nm

 

[Mark R]

Originally posted by: LoKe
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?

Banks are often perfectly happy to lend money out, as long as they have reasonable security.

Most people think of bank loans to buy cars, or houses. But, if you speak to them, they can be quite flexible. My bank has certainly given mortgages for people to buy valuable paintings (the mortgage being secured on the painting). Similarly, if you've got valuable family jewelery, I'm sure the bank would be quite happy to give you some cash, as long as they could hold a security interest in the jewelery. If you default on the loan the bank will then sell the assets for cash.

The point is that you could go to your 'friend' at the bank, saying you've got a some valuable family diamonds - but you're a bit short of cash. You hand over a brief case packed with cash but the description says diamonds or something. Obviously, somone at the bank needs to be in on the scam so they can fake the appraisals and stuff.

You then default on the loan. Bank goes to sell your 'diamonds'. Fortunately, for your personal manager, this is very easy. He then deposits the cash. The sudden appearance of cash in the bank is lost among the noise and sea of transactions. Your cash appears legit.

 

[XZeroII]

Originally posted by: her209

Originally posted by: 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.

What's a SAR? I recently deposited $5000+ in cash into my bank account and didn't have to do anything.

It means that the transaction has been flagged. You'd better make sure that you report that money on your taxes and everything is legit.

 

[imported_LoKe]

Originally posted by: Mark R

Originally posted by: LoKe
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?

Banks are often perfectly happy to lend money out, as long as they have reasonable security.

Most people think of bank loans to buy cars, or houses. But, if you speak to them, they can be quite flexible. My bank has certainly given mortgages for people to buy valuable paintings (the mortgage being secured on the painting). Similarly, if you've got valuable family jewelery, I'm sure the bank would be quite happy to give you some cash, as long as they could hold a security interest in the jewelery. If you default on the loan the bank will then sell the assets for cash.

The point is that you could go to your 'friend' at the bank, saying you've got a some valuable family diamonds - but you're a bit short of cash. You hand over a brief case packed with cash but the description says diamonds or something. Obviously, somone at the bank needs to be in on the scam so they can fake the appraisals and stuff.

You then default on the loan. Bank goes to sell your 'diamonds'. Fortunately, for your personal manager, this is very easy. He then deposits the cash. The sudden appearance of cash in the bank is lost among the noise and sea of transactions. Your cash appears legit.

I seriously doubt they would let that 1.2 just slide around knowing that they "should" have diamonds instead. I mean, this isn't the '80s, they might actually look into it.

 

[6000SUX]

As I understand it, modern money laundering is mostly about moving money across boundaries that make it untraceable (such as into and back out of foreign markets), and splitting it up into so many small parcels that it becomes very complicated to trace as a whole. It has nothing to do with contacting your pal at the bank, sinking the money into a laundromat, or any other hokey local scheme you can come up with based on a "Sopranos" episode or the like.

 

[IHateMyJob2004]

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--

HAHAHAHAHAHAHHA


Awesome quote .... totally off topic though and not anywhere nearly related ot hte conversation.

I like desk

 

[IHateMyJob2004]

Buy a laundry place and you simply claim your illegal income as legit. It's hard to track how much money is put in those machines after all Thus laundered!

 

[SampSon]

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.

That is some flawed logic there.

The amount of money you are dealing with is too high, the loan leaves a huge paper trail and a lot of liability, if this was used that person's lending ability would then be basically non-existant and the scam is a one trick pony. This idea would set off red flags in any lending institution quicker than you can dial 911.

 

[preslove]

Originally posted by: 6000SUX
As I understand it, modern money laundering is mostly about moving money across boundaries that make it untraceable (such as into and back out of foreign markets), and splitting it up into so many small parcels that it becomes very complicated to trace as a whole. It has nothing to do with contacting your pal at the bank, sinking the money into a laundromat, or any other hokey local scheme you can come up with based on a "Sopranos" episode or the like.

If you're dealing in 7 or more figures, then yeah. In the low 6 figures you can play it off with private business(es).

 

[imported_Mike]

According to WellsFargo, its over paying your CC statement and locking your account....those retarded dumbfvcks.

 

[Kyanzes]

To do it without losing anything on it, that has to be quite tricky. However there's a simple way to make your cash legal. Let's say you have a friend and you perform a particular job for him (make a website, dunno, or simply don't do anything) and then he pays you for the job well done. You simply give him the money, he takes a little premium for himself and then he wires you the money. Congratulations, you are clean as fresh snow. Don't forget to pay the taxes.

 

[6000SUX]

Originally posted by: preslove

Originally posted by: 6000SUX
As I understand it, modern money laundering is mostly about moving money across boundaries that make it untraceable (such as into and back out of foreign markets), and splitting it up into so many small parcels that it becomes very complicated to trace as a whole. It has nothing to do with contacting your pal at the bank, sinking the money into a laundromat, or any other hokey local scheme you can come up with based on a "Sopranos" episode or the like.

If you're dealing in 7 or more figures, then yeah. In the low 6 figures you can play it off with private business(es).

Not in an untraceable way, as I understand it. If you want to be safe, you have to move it across some sort of boundary that makes it hard to trace. I only know what I've read on government sites, though.

 

[6000SUX]

Originally posted by: Kyanzes
To do it without losing anything on it, that has to be quite tricky. However there's a simple way to make your cash legal. Let's say you have a friend and you perform a particular job for him (make a website, dunno, or simply don't do anything) and then he pays you for the job well done. You simply give him the money, he takes a little premium for himself and then he wires you the money. Congratulations, you are clean as fresh snow. Don't forget to pay the taxes.

Yes, you can do tiny amounts this way, but imagine how many transactions it would take for anything serious. The sheer volume of small fishy-looking transactions would probably raise a red flag in some system. Also, here the friend is acting as the launderer. He then bears the burden of legitimizing the money, not you. How would HE do it? Laundering money is the act of legitimizing it, not shifting it from the custody of one criminal to another.

 

[Slacker]

Originally posted by: her209
What's a SAR? I recently deposited $5000+ in cash into my bank account and didn't have to do anything.

Hmm, I knew the amounts, used to be 10k now it is 5k, but I never bothered to learn what S.A.R. was, it is a "Suspicious Activity Report" , so it seems that it is not every 5k transaction that must be reported, only if it is somehow suspicious.

 

[MrsBugi]

Originally posted by: XZeroII

Originally posted by: her209

Originally posted by: 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.

What's a SAR? I recently deposited $5000+ in cash into my bank account and didn't have to do anything.

It means that the transaction has been flagged. You'd better make sure that you report that money on your taxes and everything is legit.

Interesting. I transferred 10k from my ING savings account into my bank account to pay for a tuition bill, will this be flagged as well even if it is legit? Or is it just cash deposits that are flagged and investigated?