Essay on Money Laundering

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Money Laundering

In a recent movie Mickey Blue Eyes, there is a comical scene in which an unknown artist’s painting is sold to a buyer for $50,000. It seems as though a restaurant owner owed the mafia a large sum of money and he paid them by bidding an absurd amount of money for a horrid painting. The movie made this scene seem quite innocent and funny (See Appendix 1 for more examples). Unfortunately money laundering is a serious crime that is still prevalent in the United States and other countries.

Money laundering is the routing of illegal profits from bank to bank to disguise its existence. The illegal profits are usually made through activities such as drug trafficking, prostitution rings, illegal arms sales, and various
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Money laundering is usually done in countries in which they have few or very weak laws to prevent money laundering. Banks are the major targets of these operations because they can provide a variety of services that can be used to conceal the money (CCANB).

WHO LAUNDERS MONEY?

Most of the money laundered today is done by some sort of organized crime, whether it is a drug cartel, illegal arms sale, smuggling, prostitution rings, the Mafia, or corporations (FATF). Organized crime has existed in the United States for many years. Some of the organized crime groups known for money laundering are: the Russian Mafia, the Triad, other wise known as the Chinese Mafia and the Yakuza. All of these groups are known for a variety of illegal activities that involve receiving substantially high profits. Some of these activities may include drug trafficking, illegal arms sale, and various other things. Recently law enforcement has discovered that corporations have been helpers in laundering money. This discovery leads back to the Black Market Peso Exchange. These corporations do not have a direct involvement with the laundering, but are a helping hand at times. Many times corporations are the supplier of goods for the broker. The perks that go along with being the supplier entail getting an exchange rate better than the market. An example of this is if a corporation has pesos that they need to exchange back into dollars,

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