ight thanks everyone i understand now
In: Economics
You have a lucrative business doing something illegal, say supplying some city with high grade heroin. Now this is very profitable, but also rather illegal.
So when you have your fat rolls of cash from your illicit trade, and you start spending them this is going to raise eyebrows since according to your official income you can hardly afford a Dacia, yet you have a Jaguar.
This is problematic, you want to be able to USE your ill-gotten gains without attracting the attention of law enforcement.
Enter money laundering. You buy some company that makes the majority of its money through small cash payments, like say a strip club, and a car wash, and a kebab restaurant. You take your bad money and throw it into your legit company, artificially inflating the income there.
You wash 50 cars a day, but in your accounting you do 75 cars a day. And there you go, 25 car washes worth of money is no no longer dirty, but clean and you can use it without the Fuzz coming to your door wondering how you afforded that Jaguar.
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