And how do those at the top buy those mansions and estates. I can’t imagine they’ve got a mortgage nor can I imagine then paying in heaps of cash
In: Economics
Bottom guys – Direct cash (they dont pay tax)
Middle guys – Salaried from laundered money (See below)
Upper guys – Direct or laundered cashflow towards a company they are in charge of, that can also go to middle guys.
Organized crime needs money that looks legal, therefore they create companies where you cant trace money and records are easy to manipulate. A good example is a tanning salon, you open it and estimate that if people used the most expensive services at all opening hours, it would profit you $1.000.000. Then you bring $1.000.000 cash and write that people came in last month, all using money and paid a total of $1.000.000 dollars. You then report that to the tax, pay your “employees” and put the profit into various things. This is simplified and just one example of how it can be done.
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