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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Why would the authorities monitor every cash based shops? It’s a lot of shops…
The vast majority of them being completely legit.
Once they start being suspicious about a place, sure, but unless you’re living in a police state, it’s gonna take a while. The laundering is usually done in a way that doesn’t make it immediately obvious.
Also, money laundry fronts rarely remain open for too long once the authorities start getting suspicious. And even then, a couple of years is usually the maximum before the shop changes in some fashion (change of ownership on paper, closes and reopen as a new shop, etc.) The point is to shield. Current operations from the previous ones (it might have been a laundering front before, but that one closed or changed ownership and is clean now).
Even if under suspicion, the surveillance will be probably stop after of few months of no activity and one or two changes of ownership.
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