How Money Laundering Occurs

One of the most difficult crimes to detect is Money laundering. It is the act of trying to make illegally gained income appear to be legitimate. This can be gangs selling drugs or the money made from the underground sale of stolen items. It may also be large sums of stolen money either by Internet scams or directly physically acquiring it. However the money has been illegally gained and the criminal still faces a problem. This problem is the regular economic and banking system that we all live under. The carrying around of large cash deposits is no longer practical or sensible. Criminals still live within society and if they want to purchase things or make payments they have to try and “convert” this dirty money into clean usable resources. This is where they start to encounter banking systems like AML IDENTITY VERIFICATION systems such as that from These systems attempt to limit the ability of the criminal to clean up these funds.

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There are several giveaway signs that money laundering is occurring. One of the classic ways is to open a regular bank or savings amount with a small or minimal amount of the cash. Suddenly the account starts to receive large cash injections into it only for the money to move out of the account quickly into another account and back again. Sometimes this transfer is instant and is known as masking. It becomes difficult to track the cash and its original origins.

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The most blatant way is to try and gain a mortgage. The cash is used as a deposit for a property and the rest is borrowed from the mortgage company. As soon as the property is purchased, no one comes to live in it. Within weeks the property is on the market to be sold.

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