Money Laundering and What Constitutes Dirty Money
The phrase “dirty money” is often used interchangeably with money laundering, a financial crime. The way this dirty money is made to appear legitimate is through “laundering,” or passing it through an elaborate sequence of transactions to conceal the source of the money, which is often tied to further criminal activity. Money laundering is almost never a standalone charge, as most people charged with this crime also receive charges for other serious crimes, such as drug trafficking, fraud, robbery, bribery, corruption, and more.
How Is Money Laundered?
The process of successful money laundering is extensive and can occur in many ways. The basic money laundering process includes:
- Placement: This moves cash from its original source, in this case, the “dirty money,” or criminally-derived funds. The money is then placed into circulation or into the financial system, whether that is a casino, shop, or other business, either local or abroad.
- Layering: The source of the money and its ownership is disguised through this stage in an attempt to trick law enforcement agencies of the money’s true origin. One known method is by reselling assets bought with illicit funds, either locally or abroad.
- Integration: The final stage involves the reintroduction of “laundered” money into the economy, mainly through the banking system, to have the false appearance that the money came from normal business earnings.
How Is Money Laundering Discovered?
Money laundering operations can go on for years. Often, money launderers are discovered through another investigation for charges related to tax fraud or evasion, drug trafficking, prostitution, and so on. There are also many anti-money laundering agencies in the United States, including the Internal Revenue Service (IRS). The Money Laundering Control Act of 1986, for example, made it illegal to conduct financial transactions with any proceeds generated by dirty money, such as funds from drug trafficking, embezzlement, and others.
Accused of Money Laundering? Contact Hager & Schwartz, P.A. for a Free Case Evaluation.
If you’re under investigation for money laundering, it is extremely important to secure legal representation as soon as possible to build a solid defense strategy. Our Fort Lauderdale money laundering defense lawyers at Hager & Schwartz, P.A. can help you protect your rights and reputation.
We are your legal advocates. Contact us at Hager & Schwartz, P.A. for a free consultation. Our white collar criminal defense attorneys in Fort Lauderdale are prepared to go to trial to fight for your rights. Call (954) 840-8713 today.