Typically they will just lie about sales right, so couldnt tax authorities just monitor the number of people going in and out of businesses where they can track easily sales from the outside?(for example barber shop) Then they could just shut down the operation easily by proving fraud? I might be stupid here but it doesn’t make sense to me
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Because money laundering businesses *very* specifically *don’t* lie about their sales.
The way money laundering works is you take “dirty”(read criminally acquired) money and spend it with a legitimate business that sells over priced Italian food(as an example). The price charged is on the menu and the food is actually delivered to the customer.
There is no law that says you can’t over charge for food and there is no law that says you have to accept credit cards for that over priced food.
The business then pays all of its overhead and taxes as normal and the owner of the business has “clean” cash that they can deposit into their bank account.
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