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| *Ostroff, Fair and Company>>>Other - Business & Finance |
Money Laundering? |
I've been told that a very close friend has been doing this. I've heard of it but don't really know what it is or what it involves. Can anyone enlighten me please? What you do is open a few personal accounts and a business account. You then just transfer the same money by standing order between these accounts in order to give the illusion of making money. Then take out personal loans and mortgages from banks on the basis of self certified earnings. This allows you to make it look like you have expensive cars and a house, when in reality the bank owns them. Ultimately, the problem with this is you need to be able to pay the repayments. This can only be done by taking out further loans and mortgages on imaginary rising property prices. Eventually, this money laundering collapses and the whole property market goes into free fall. The banks are found out for the fraud they have been complicit in. People are made homeless. Of course the biggest laundry of money is done by the Inland Revenue. They take money as taxes, and launder it to all the people in the employ of government. It is also sometimes known as redistribution of wealth. Some people also call businesses money laundry. This is because a business takes money and redistributes it to other people. The MAFIA were well known for using fronts like legitimate cafes, and bed and breakfast enterprises to cover the laundering of drug and crime money. The definition of money laundry depends on who is receiving, and who is giving the money. The most important aspect in this regard, is who is passing judgement! http://www.laundryman.u-net.com/page1_hi... The above link explains it all. Thats a very bad thing to do. If you get caught then you are in big trouble. Stay away from your friend. Anyway why dont you ask your friend. Money Laundering is the process of creating the appearance that large amounts of money obtained from serious crimes, such as drug trafficking or terrorist activity, originated from a legitimate source. Some estimate the size of the problem is over $500 billion annually. Often thought of as a victimless crime, money laundering is a very serious issue. Without it, international organised crime would not be able to function. its where u take it in and out of diff back accounts so its origins and its destination cannot be tracked. Means using money from illegal activities going through a legit bank account.Usually a business.To be used for legal investment.Making it harder for investigators to prove it came from crime.Dirty money washed. Previous answers are correct about criminal activities, but it could also be done for tax evasion reasons. |
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