money laundry

Counterfeit and money laundry

What’s money laundering?

Money laundering is the process of hiding the origin of illegal money and converting them to make it legitimate. Money from Illegal businesses like drugs, weapons, and counterfeit money is converted to look legitimate through money laundering. Indeed the money launderings come with three stages, such as placement, layering, and integration. Insertion of illegal money occurs in the placement stage. The layering conceals the original financial source through multiple transactions. Finally, the integration allows withdrawing the money as legitimate.  The illegal cash is withdrawn to financial institutions making money legal. Financial institutions capture unusual transactions to avoid money laundering.

The Counterfeit Buisness

Counterfeit money is another illegal business that is widely spread in the world. Indeed the process of money laundering is utilized by criminals to make the fake bills real. Peru created over 60% of counterfeit US bills and transferred them to economic hotspots in the US. So how to launder counterfeit money? The distributed money is spent at shops, and the goods are returned with cash. Therefore the net profit is around 90% from the expenditure for counterfeit money. Indeed criminal organizations work hard to launder counterfeit money as it looks highly profitable.

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