In the UK it is widely ‘known’ and accepted that the sweet shops and phone shops on places like the famous Oxford Street are fronts for money laundering. Can anyone explain to me what money laundering is and what these shops are actually doing? How do people know these shops are doing it? I don’t understand.
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They’re not money laundering!
If you want to launder money, it needs to look legit. A dodgy company that evaporates before paying business rates and sells knock off products doesn’t look legitimate. If anyone asks where the money comes from, they’re not going to be able to give a convincing answer.
These places exist because footfall is high, profits per product are huge (because they pay very little and sell at a huge markup) and overheads are low because they vanish before paying any dues.
People think it’s money laundering because they don’t put any thought into it and think any suspicious business must be money laundering.
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