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.
In: 1554
Money laundering is like this: have a business that can claim income legally. Have illegal income. Use the business to claim the money as it’s own income.
An easy example is a corner store – lets say you own a corner store that makes $1000 a month in profits. You also sell drugs, and make 15,000 a month. You say the store made 16,000 this month and pay taxes on your drug money. Now you can spend your drug money without anyone asking where it came from, because it’s clearly income from your highly successful corner store.
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