What is money laundering?
In: Economics
I’m a drug dealer (not really) and make lots of cash selling drugs. I can’t really report that to the IRS without going to jail and can’t deposit it into a bank without them telling the IRS.
Large pallets of cash aren’t really that useful in today’s society though, so I need a way to make it seem I earned the cash legitimately. I do this by running a business where people typically pay cash and then funnel the cash through that business pretending it’s from sales.
To stick with the term, I could buy a laundromat (or many). People normally pay in quarters or feed a quarter machine with dollars, so large amounts of cash aren’t that suspicious, especially since such a business doesn’t really track its sales that closely.
If I were a big-time drug dealer, I might buy a casino. If you’ve ever been to vegas, loose cash is everywhere. You simply walk up to the game of your choice, hand the staff a wad of bills, and they give you the chips. No identification required and the house always wins, so “losing” it all isn’t abnormal.
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