Can you give me an understandable example of money laundering? So say it’s a storefront that sells art but is actually money laundering. How does that work? What is actually happening?
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People have the wrong idea about money. They tend to think if money can’t be proven to be from illegal activities, it’s totally fine.
But that’s backwards. Money is assumed suspicious unless you can prove you got it legitimately.
Most people never have to worry about that because their employer submits a statement that says “yeah, I paid them X in 2021” and the IRS says “aight” and it’s never an issue. That’s your W-2. Independent contractors know it can get a little more complicated than that, but they still have receipts which should add up to their total income for that year.
If things *don’t* add up, you can’t just say something like “I found it”, there’s actual laws for reporting “found” money officially. If you don’t use them, it’s tax fraud, and if you use them repeatedly for huge sums of money, well, it doesn’t take a genius.
That’s where money laundering comes into play. You’re not actually doing anything to the money itself, you’re falsifying a plausible “backstory” for how you got the money legitimately.
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