ElI5: Money Laundering: Those US candy shops on UK High Streets, How are they money laundering, what is it and how is it so well known?

Question

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

Answer 1

Any shop could be used for money laundering.A legitimate business will give you a business account with a legitimate bank.

Profits, losses, estimates , rentals, stocks, employers can then be “fudged” by very clever accountants, keeping your money safe, the taxman happy and the cops out of your way.

You can do large payment, employ friends and family, and all other perks of a legit businessman.

The “oxford street candy shops” is infamous because is hard to explain as those shops can stay open doing so little business, tiny profit margins and the insane rent prices.

Basically money laundering is the answer to “where did you get all that money?”