Why is money laundering necessary?
In: Economics
Because if you come into a lot of money you can’t explain, then law enforcement will know something is up. And you’re more likely to get caught. IIRC Banks are required to report cash deposits over $10k. (Even when they are legitimate.)
So if you find yourself with dirty money, you have two options, use it strictly as cash. Use it for gas and groceries and save your legitimate income for important payments like mortgage and cars. But that means you’re really only benefitting like, $100/week. If you have a lot of ill gotten gains, you might not be able to burn through all of it.
If you want to actually use the money you stole as money, then you need to make it legal. You need to launder it. That way you can use the money for anything. Including your mortgage, cars, big purchases, etc.
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