"Definitions for the man on the street" - Definitions and specific legislations may vary from jurisdiction to jurisdiction. The examples and definitions given are not exhaustive and are for learning purposes only.
What is Money Laundering?
The world today is no stranger to the term "Money Laundering"... it is very often peppered in many newspapers worldwide nowadays, making reference to this financial crime and the people or companies being charged by this or that related legislation. But do we really know what the term means? I try to illustrate with a simple example.
Why is it important to launder money?
Most people today are familiar with the term money laundering. Many also roughly know what it means? But why is it such a big thing? Why do criminals want / need to launder money? What's in it for them? I leave a little story here, hopefully it can cast some illumination to the reason behind money laundering.
Who can be guilty of money laundering?
The general public may have the impression that guilt for money laundering should always fall on the "bad guy", so if I do not commit crimes, I should be safe, right? Wrong. Anti money laundering legislation can define money laundering as "directly or indirectly, being in possession of or processing proceeds from crime...." so the net can be cast wide. I attempt to illustrate via a slightly ironic example....
How does one launder money?
The readers of financial news are quite familiar with the crime of money laundering. But how is it actually done? What must a criminal do to actually launder money. Some say money laundering is "cleaning dirty money". While true, the phrase does not really explain how it is done. I tell a simple story here, and hope that it adds some clarity to the process of money laundering.