I think everybody has been heard of money laundering. It's an illegal activity, you know that. This term became famous for a lot of movies and tv shows. But it's also as old as money.

This is just an informative post about how this works and what's happening around you.

Money Laundering is simply any activity that cleans illegally obtained funds from their dirty criminal origins like selling drugs, taking a bribe or other corrupt acts. Laundering allows them to enter into the legal economy.

We can classify this money laundering process mainly into three steps.

They are placement, layering and integration.

1.Placement

It's the process of converting illegally obtained money into assets that seem legitimate. It's mainly done by depositing funds in the bank accounts in the name of anonymous corporations. So now it's become hard to find them and trace it back to the owner.

2.Layering

It involves multiple transactions to further distance from their origin. This can take the form of transfers between multiple accounts, or the purchase of the tradable property, like expensive cars, luxury jewels and real estate. Casino's are also the favourite places for layering due to their cash flow.

3. Integration

The integration allows clean money to re-enter the mainstream economy and to benefit the criminal. Now he can use this money to legal activities. He can invest it in the legal business and also start a fake charity work.

That's all. I think I covered it up simply.

This is what that mafia don's you watch on TV's to clean their money.

• leofinance
• steemleo
• money
• laundering
• steemit
• finance
• steel