Money Laundering

A Quick and Dirty Guide

The Set-Up

What is Money Laundering

• Process of making “dirty” money clean

• Reasons for Laundering Money– Tax Evasion– Illegal Activity– Hide Earnings

Fun Fact

• $1 Million Dollars worth of cocaine weighs

• $1 Million Dollar of US Currency

• People will notice if you are trying to physically move a lot of money

Situation

Step 1 - Placement

Step 2 - Layering

Step 3 - Integration

Epilogue

• $500 billion to $1 trillion laundered annually– Criminal Activity still pays off

• Hurts emerging market countries– Clean money moves out of EM banks for fear of

government interference• Loss of Tax Revenue– Rest of us have to pay more taxes