How is money laundering detected and proven_ – straight dope message board

If someone involved in money laundering gets a “loan” from a shell company he set up, is it not rather easy to show that that company existed for little more than to “loan” him money?

As I understand it, the feds can simply say “we believe this is income” and then it’s a matter of preponderance of evidence to show this was a legitimate loan from a legitimate company. Money laundering what is it Then the principals of the loan company have to show up in court and explain how their business works, where they got the money, why it was a legitimate loan, and so on.

the whole process gets complicated, and as the linked article shows, the problem is in creating a viable false front. U s money laundering Without enough participants it’s hard to fake a functional business. Illegal money laundering one thing I read said this is why the “mob” liked to buy legit businesses like pizza places that get a decent amount of money much of it cash, and sort of layer in the illegitimate proceeds as extra sales.


What does money laundering mean (Remember the scene in Breaking Bad where the wife is punching in premium price sale after sale when nobody is around.) And then, if you funnel to much in fake sales, it becomes obvious that the location is doing an unreasonable amount of business – and the feds would likely stake out the place for a while to compare observed traffic with claimed throughput.

As I understand it, the feds can simply say “we believe this is income” and then it’s a matter of preponderance of evidence to show this was a legitimate loan from a legitimate company. Money laundering jobs Then the principals of the loan company have to show up in court and explain how their business works, where they got the money, why it was a legitimate loan, and so on.

the whole process gets complicated, and as the linked article shows, the problem is in creating a viable false front. Advantages of money laundering Without enough participants it’s hard to fake a functional business. Money laundering quiz one thing I read said this is why the “mob” liked to buy legit businesses like pizza places that get a decent amount of money much of it cash, and sort of layer in the illegitimate proceeds as extra sales. Money laundering in india (Remember the scene in Breaking Bad where the wife is punching in premium price sale after sale when nobody is around.) And then, if you funnel to much in fake sales, it becomes obvious that the location is doing an unreasonable amount of business – and the feds would likely stake out the place for a while to compare observed traffic with claimed throughput.

When it comes to one’s tax bill, it is indeed about preponderance of evidence. Money laundering regulations for estate agents For criminal prosecution, the threshold is beyond reasonable doubt. How money laundering works That sounds like it would be a lot of difficult to prove.

Do I understand correctly that if someone doesn’t attract the attention of the cops such that they do digging into his tax history and start asking how he got the money for his belongings, he can pretty much spend and own as much as he likes?

When it comes to one’s tax bill, it is indeed about preponderance of evidence. Fraud money laundering For criminal prosecution, the threshold is beyond reasonable doubt. Process of money laundering That sounds like it would be a lot of difficult to prove.

They would make 60$ of profits if they had enough customers to sell it to. Anti money laundering statistics Failing that, they turn 80$ of dirty money into 60$ of apparently clean money.

First – the problem is that any transactions are likely to attract the attention of the IRS. Money laundering rules The problem with illegal money, is that it is cash. Money laundering eu Using large amounts of cash is instantly going to attract the attention of the IRS and the Secret Service. Money laundering definition uk Transactions over $10,000 must be reported. How to do money laundering Structuring activities to avoid that limit is also a crime. Anti money laundering software (I.e. Money laundering nz 10 deposits of $9,000). Money laundering examples cases Financial institutions are required to report activity that appears suspicious, too. Money laundering mexico You want to deal truckloads of meth or bricks of cocaine, how do you turn pallets of cash into bank deposits so you write cheques for your Porsche and big mansion? A plumber doing occasional jobs under the table will likely get away with it, a major drug dealer has probably already attracted the attention of the DEA at least.

Seizing the money is just the first step. Money laundering 3 stages Then, they investigate the chain of money. Money laundering in canada Anyone who is participating will face indictment. Importance of anti money laundering While legitimate businesses might be able to use offshore accounts, even the famously private Swiss banks have agreed to cooperate when money laundering for organized crime is involved. Money laundering news (Plus for some tax evasion schemes) How do you propose to set up a company to “loan” you money and still make that company appear legit to the authorities? Loaning money to yourself as a principle in a company is fraud and tax evasion. What do you mean by money laundering Which dupe is going to run your company and how long will he keep quiet when faced with jail time? A company with no legitimate purpose? Tax evasion. Federal money laundering statute Deliberate tax evasion is a crime. Difference between fraud and money laundering and so on…

The thing is, the bar is selling all the drinks it can sell. Preventing money laundering If it pours extra down the drain – well, taking a 25% bath to make their money legit is a small price to pay. Money laundering activities IIRC some articles have mentioned typically a 50% loss on money laundering – a cost of doing business. What is money laundering mean Plus, if they were greedy they could pour the booze into no-name bottles and resell, or give it to the grunt workers, etc. Money laundering in hindi Why bother? Just take the legitimate money.

But they’re a bar. Money laundering services Their business is selling five dollar shots of Stoli. Money laundering is Every time they threw out a bottle of Stolis they were throwing out the sixty dollars of profit they would have made by serving it legitimately and replacing it with sixty dollars of illegal profits. Uk money laundering How is that coming out ahead? They might as well quit the crime business and run a legitimate bar.

Its quite common for fronts to be successful businesses in their own right with actual staff who work at nothing but the purported business, and be innocent about the “extra-curricular”. Money laundering sentence uk We had a poster here ( WhyNot) if memory serves, apologies if I mixed you up), who was such a worker and had no idea or clue, even though they actually had some bookkeeping responsibility.

A legitimate bar or indeed any business is going to be a lot more easier to launder money or whatever through, compared to one which was a sham. Why money laundering is done You can show cash flows and put forward witnesses who will say truthfully, oh yeah we cetainly regularly had days when we must have made that much money.

It just seems to me a foolish way to go about it. Definition of anti money laundering Why destroy valuable inventory? Why not do the same thing at a place that sells services like a barber shop? The barber performs ten haircuts during the day at twenty dollars a piece for two hundred dollars. Smurf money laundering But at the end of the day you slip in three hundred dollars from some illegal business and the barber says he performed twenty-five haircuts during the day and that accounts for the five hundred dollars in the cash register. Money laundering cases And you didn’t have to destroy a hundred dollars worth of real inventory to do it.

Because not using up enough inventory is an enormous red flag if anyone looks at your books. Different types of money laundering And I’d think that the difference between a 10-cut-a-day shop and a 25-cut-a-day shop would be really obvious to casual observation. Money laundering fines penalties (I would not fall over from shock if some of the perpetually-empty barber shops in my city were fronts)

I’m sure that the money launderers would love to clean their cash without spending any money on inventory, but the scheme actually seems rather good. Money laundering online For an illegal money laundering scheme.

• No one to say ‘by the way, the booze for my underage kegger was bought under the table from bar-X’ when they get caught by the cops for something unrelated

They whole point is to not get noticed (since I don’t think there exists a money laundering scheme that would hold up under intense investigation) and the cost of inventory is cheap insurance. Money laundering in india examples So long as you aren’t doing it in front of someone will to turn informant, of course .

So yeah, that’s the whole point, but they still try to avoid paying taxes. Suspected money laundering Like by Smurfing, making many small deposits into a bank account- usually by having guys buy MO under $2900.

The problem is – and this is why money laundering is easier than other crime tracking – if you want to live a millionaire lifestyle, you need to have legitimate income. What is money laundering in india Legit means paying taxes on it. What is money laundering in simple terms If the feds notice you, they can start investigating. Origin of money laundering Paid cash for gas or groceries? no problem. How money laundering is done Paid cash or money orders for your mortgage? Your car payment? Your trip to Vegas? Your $500/night hotel suite? Your gardener, your maid, your limo service? At a certain point they will notice.

What do you propose doing with dozens of money orders for $2900 each? You bank will file a suspicious activity report if you deposit 10 of these every month, or if they notice the same parade of people buying the same thing month after month.

Using a business as a front requires you to buy a legitimate front and run it like a legit business, just monkey with daily receipts to ensure the illicit money trickles in consistently. Meaning money laundering The more cash the business deals with, the better. Definition of money laundering uk That’s why the mobs love bars, pizza joints, vending machines, etc.

For a small time operator – the old route was to deposit overseas (“Wolf of Wall Street”) where the feds could not get details, and then transfer the money home. Anti money laundering articles However, almost every country overseas is cooperating to stamp out money laundering, which is usually an attribute of organized drug smuggling. Free anti money laundering certification So regular large cash deposits are usually a flag overseas too. Laundering money examples Taking money out of the country over $10,000 cash without declaring it is also a crime.

Plus, you then have to explain to the feds where this money is coming from when you transfer it back – and one requirement is that if you have “investments” overseas, you must declare any holdings valued over $100,000. 4th money laundering directive So if you claim you are withdrawing from your late Uncle’s estate, well, you should have declared the inheritance way back when, and there better be that $100M you claim to be withdrawing from. How does laundering money work Plus any foreign banks with Americans as customers must declare their holdings or risk forfeiting a big fine and any chance of participating in financial transactions with American institutions.

Let’s say you just want to live a moderate upscale lifestyle – you “make” $290,000 a year. Money laundering legislation That means you have to buy and then deposit in Mexico 100 of these $2900 MO’s each year.

But you don’t have a $10M deposit in the Mexican bank so it can’t be withdrawal – plus, you MUST report large foreign asset holdings. Anti money laundering training free The Mexican bank will cooperate with the feds (they have no choice) and will report that the money comes from those money order deposits, which the feds trace back to bought a bank near your home.

So you’re being paid for doing cybersecurity consulting for YoSoyRico.com in Mexico? Still, then the feds dig into that company. Legal money laundering It has a bizarre source of income (MO’s from near you) and apparently does no other business. Eu directives on money laundering So again, unless it’s a front doing a decent amount of legitimate business, meaning another quasi-valid “front” business, you will also be caught.

Gift? From whom? I would imagine “gift” would ring the most alarm bells. What is money laundering act Again, the feds will trace the money trail back to those MO’s. Offshore money laundering If you have a bunch of flunkies buying them, one or more will turn state’s evidence on you rather than go to jail.

You seem to think the feds will be stymied by a border. How many years for money laundering Almost every bank in the world now cooperates with the feds, and of course Mexican authorities, despite occasional corrupt officials, are fully cooperative with drug and money laundering initiatives. Money laundering high risk geographies are You too must disclose foreign holdings and accounts. How to detect money laundering Failure to disclose is a crime.

I note that those businesses tend to 1) deal with the public in lots of small transactions, 2) sell common objects rather than services, 3) often have high markup on the goods sold. Money laundering compliance Am I missing anything else?

Well, the tight controls on casino licenses indicate that casinos – another business that rakes in a lot of cash – are also a favourite for mob money laundering.

As for “I won it at the casino” – I have heard that the casinos have IRS agents wandering the floors just waiting to find people who hit the big jackpot, to ensure they get the government share. Who do you report money laundering to Any decent sized win will already be documented. Money laundering registration Again, the problem is not disposing of that one-time $50,000 windfall. Types of anti money laundering you just buy groceries and pay bar tabs with cash etc. Money laundering officer for the next few years. Laundering money meaning The problem is consistently laundering a good income of, say, $300,000 a year. Sars money laundering That will be hard to claim as a lucky series of sub-$1000 wins in Atlantic City; certainly the feds can check the legendary casino video footage. Money laundering techniques india Even Monte Carlo is likely to tell the feds whether or not you won big; they have no reason to be your alibi.

I note that those businesses tend to 1) deal with the public in lots of small transactions, 2) sell common objects rather than services, 3) often have high markup on the goods sold. Money laundering philippines Am I missing anything else?

Well, the tight controls on casino licenses indicate that casinos – another business that rakes in a lot of cash – are also a favourite for mob money laundering.

As for “I won it at the casino” – I have heard that the casinos have IRS agents wandering the floors just waiting to find people who hit the big jackpot, to ensure they get the government share. Money laundering checks Any decent sized win will already be documented. Career in anti money laundering Again, the problem is not disposing of that one-time $50,000 windfall. How to report money laundering you just buy groceries and pay bar tabs with cash etc. Global money laundering statistics for the next few years. How many years in prison for money laundering The problem is consistently laundering a good income of, say, $300,000 a year. Definition of money laundering That will be hard to claim as a lucky series of sub-$1000 wins in Atlantic City; certainly the feds can check the legendary casino video footage. What do you understand by money laundering acca Even Monte Carlo is likely to tell the feds whether or not you won big; they have no reason to be your alibi.