What’s the concept of money laundering?

Question

ight thanks everyone i understand now

In: Economics

Answer 1

Let’s say (hypothetically) I own a laundromat, but also illegally sell drugs. I make 100k per year at the laundromat, and 100k selling drugs. I want to be able to spend the 200k without raising questions, so I lie about how much my laundromat makes so on paper it totals 200k.

I laundered the money (cleaned it) by giving the appearance that I earned it from my laundromat.