You may have heard the term money laundering before and not given it much more thought. The truth is that money laundering is a form of white-collar crime used to make unlawful money look legitimate.
Money laundering can be applied in various ways, but the principle of making dirty money clean is always the key factor. Outlined below are some of the more common examples of money laundering.
Using real estate to launder money
Traditionally, using real estate to launder money has been one of the most popular methods. Although regulations in this area are tightening, this is still one of the more common methods of money laundering. Often, a buyer purchases the real estate with illegitimate funds, waits for a period of time, and then sells the property to recuperate clean money.
Using cash businesses
Another common form of money laundering involves cash businesses. Businesses such as restaurants tend to deal in a lot of cash each week. The cash is taken in and reported and can be taken out again. Laundered money can be mixed in with the legitimate cash of paying customers to make it look like all of the proceeds are legitimate.
If you deal with large sums of cash each day, then it’s likely that your actions may come under scrutiny. You may know that you’re not doing anything illegal, but that doesn’t mean law enforcement won’t take an active interest.
Facing accusations of money laundering is serious. But, it’s important to remember that accusations alone do not mean wrongdoing. To protect your rights and your freedom, it will benefit you to seek legal guidance.