Quick Definition

Money laundering is the process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to be earned legally.

Examples

• 1A business owner overstates the amount of daily cash receipts to mix illegal profits with legitimate business earnings.
• 2A person buys luxury cars with cash earned from illegal activities and then sells them overseas.
• 3Using online payment systems to transfer illicit funds through a complex network of transactions to obscure their origin.
• 4Investing in real estate by purchasing properties with illegal funds and then selling them to legitimize the proceeds.

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