I know money from drugs, robberies, stolen goods, etc is “dirty” but, how does anyone know it’s dirty? Why can’t you just spend your money?
In: 316
Firstly you start with money that nobody knows about. However you can not really go down the high street to spend that money. People will know you have money and then you get the police or more importantly the IRS asking you about it. If you can not show that you have paid income tax on the money that is tax evasion and you end up in jail. If you go to the IRS first and try to pay your taxes before spending the money they demand to know where you got it, it could be others are dodging taxes. If you refuse to tell them you end up in jail.
So what you need in order to use all your hidden stash of money in order to buy stuff you want is a good story for how you got all that money so that you can pay your income tax and actually use it without getting caught. This is what money laundering is. It is taking money which can not be shown in the light of day and makes it clean so you can go flash it around without anyone being suspicious.
Latest Answers