ight thanks everyone i understand now
In: Economics
Say you stole a bunch of money.
Just having the money is useless, you want to be able to spend the money.
Now if you buy a lot of things, many people might ask, where did the money come from?
Now you can’t just say “I stole the money!” they’d put you in jail.
So you go to do things that can explain where you got the money you stole from.
That way if someone asks you can say stuff like “That business I just started did really well!” or “Someone really liked my art so he bought it from me!” or more likely it’s something a lot more complicated because police are getting better at figuring this out.
Often it will require someone to help you out, or just keep quiet about lying to the government for you. So these people are often given some of the money you stole.
It’s called money laundering because money you stole is called Dirty Money.
Money you are free to spend is called Clean Money.
So the process of turning Dirty Money into Clean Money is Money Laundering.
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