How common is money laundering? What types of businesses are used to launder money? Is the SP and MP businesses good to launder money?
Money laundering.
- Thread starter HAMSTER INSPECTOR
- Start date
C
crystalpalace
HAMSTER INSPECTOR said:
Any business that meets the following criteria is pretty good to be used as a "money laundering" entry point:
1- Deals with services to the public.
2- It's reasonable to expect it deals mostly with cash.
3- It's reasonable to expect it keep a minimal details of transactions.
SP or MP businesses are quiet good as they can generate their own legitimate income while generating enough business to be used effectively to take in big amounts of illegal earnings to be channeled through them as earnings.
Gee......................
I thought that other guy with 10,000 post to his name had more time on his hands than he knew what to do with!
I thought that other guy with 10,000 post to his name had more time on his hands than he knew what to do with!
Pretty much any cash business is good for money laundering. The harder it is to know how much sales it has, the better.
*cough* *cough* strip clubs *cough* *cough*
*cough* *cough* strip clubs *cough* *cough*
Seems to me that businesses that are good for money laundering want to be 100% legit in all respects in order to stay clear of the law. MP and SP businesses operate in a grey zone. I don't think they would be popular choices with agency owners.
However, I would think that much of the income generated by MPs and SP agencies goes undeclared with CRA. In order to launder money earned illegally in other businesses, it must be channelled through a legitimate business that declares earnings. I don't see that happening with SP agencies or MPs. So for that reason, if they are used to launder money, they would attract an lot of unwanted scrutiny from LE.
I think these 3 criteria are right on. The first criteria is important because it generates the second and third criteria.crystalpalace said:
However, I would think that much of the income generated by MPs and SP agencies goes undeclared with CRA. In order to launder money earned illegally in other businesses, it must be channelled through a legitimate business that declares earnings. I don't see that happening with SP agencies or MPs. So for that reason, if they are used to launder money, they would attract an lot of unwanted scrutiny from LE.
I'll bet the movie industry is LOADED with money laundering. Oh right, a movie makes hundreds of millions of dollars, but Joe Amatuer can't make a 30 second commercial?
Ditto with the National Baseball League. He's out (but was never tagged).
Gyaos Baltar.
Ditto with the National Baseball League. He's out (but was never tagged).
Gyaos Baltar.
In the good ole days , say the 70's early '80's when the majority of the building trades were from a "certain" ethnic group.( cougha, cougha..) The building owner/developer pays them with the cash from his "other" business, the worker is happy to get cash that he never needs to report. Complete building is then financed or sold which creates legit source of cash.
rinse
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rinse
repeat as required
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Google, Wiki, and the horsey police are your friends:
http://www.rcmp-grc.gc.ca/poc/launder_e.htm#Money
Money Laundering Methods
* Structuring ("smurfing"): Smurfing is possibly the most commonly used money laundering method. It involves many individuals who deposit cash into bank accounts or buy bankdrafts in amounts under $10,000 to avoid the reporting threshold.
* Bank Complicity: Bank complicity occurs when a bank employee is involved in facilitating part of the money laundering process. Bank complicity is becoming increasingly difficult for criminals to use following the introduction of the Canadian Bankers Association's policy, procedures and training (see Canadian Bankers Association ).
* Money Services and Currency Exchanges: Money services and currency exchanges provide a service that enables individuals to exchange foreign currency that can then be transported out of the country. Money can also be wired to accounts in other countries. Other services offered by these businesses include the sale of money orders, cashiers cheques, and travellers cheques.
* Asset Purchases with Bulk Cash: Money launderers may purchase high value items such as cars, boats or luxury items such as jewelry and electronics. Money launderers will use these items but will distance themselves by having them registered or purchased in an associate's name.
* Electronic Funds Transfer: Also referred to as a telegraphic transfer or wire transfer, this money laundering method consists of sending funds electronically from one city or country to another to avoid the need to physically transport the currency.
* Postal Money Orders: The purchase of money orders for cash allows money launderers to send these financial instruments out of the country for deposit into a foreign or offshore account.
* Credit Cards: Overpaying credit cards and keeping a high credit balance gives money launderers access to these funds to purchase high value items or to convert the credit balance into cheques.
* Casinos: Cash may be taken to a casino to purchase chips which can then be redeemed for a casino cheque.
* Refining: This money laundering method involves the exchange of small denomination bills for larger ones and can be carried out by an individual who converts the bills at a number of different banks in order not to raise suspicion. This serves to decrease the bulk of large quantities of cash.
* Legitimate Business / Co-mingling of Funds: Criminal groups or individuals may take over or invest in businesses that customarily handle a high cash transaction volume in order to mix the illicit proceeds with those of the legitimate business. Criminals may also purchase businesses that commonly receive cash payments, including restaurants, bars, night clubs, hotels, currency exchange shops, and vending machine companies. They will then insert criminal funds as false revenue mixed with income that would not otherwise be sufficient to sustain a legitimate business.
* Value Tampering: Money launderers may look for property owners who agree to sell their property, on paper, at a price below its actual value and then accept the difference of the purchase price "under the table". In this way, the launderer can, for example, purchase a $2 million dollar property for $1 million, while secretly passing the balance to the seller. After holding the property for a period of time, the launderer then sells it for its true value of $2 million.
* Loan Back: Using this method, a criminal provides an associate with a sum of illegitimate money and the associate creates the paperwork for a loan or mortgage back to the criminal for the same amount, including all of the necessary documentation. This creates an illusion that the criminal's funds are legitimate. The scheme's legitimacy is further reinforced through regularly scheduled loan payments made by the criminal, and providing another means to transfer money.
http://www.rcmp-grc.gc.ca/poc/launder_e.htm#Money
Money Laundering Methods
* Structuring ("smurfing"): Smurfing is possibly the most commonly used money laundering method. It involves many individuals who deposit cash into bank accounts or buy bankdrafts in amounts under $10,000 to avoid the reporting threshold.
* Bank Complicity: Bank complicity occurs when a bank employee is involved in facilitating part of the money laundering process. Bank complicity is becoming increasingly difficult for criminals to use following the introduction of the Canadian Bankers Association's policy, procedures and training (see Canadian Bankers Association ).
* Money Services and Currency Exchanges: Money services and currency exchanges provide a service that enables individuals to exchange foreign currency that can then be transported out of the country. Money can also be wired to accounts in other countries. Other services offered by these businesses include the sale of money orders, cashiers cheques, and travellers cheques.
* Asset Purchases with Bulk Cash: Money launderers may purchase high value items such as cars, boats or luxury items such as jewelry and electronics. Money launderers will use these items but will distance themselves by having them registered or purchased in an associate's name.
* Electronic Funds Transfer: Also referred to as a telegraphic transfer or wire transfer, this money laundering method consists of sending funds electronically from one city or country to another to avoid the need to physically transport the currency.
* Postal Money Orders: The purchase of money orders for cash allows money launderers to send these financial instruments out of the country for deposit into a foreign or offshore account.
* Credit Cards: Overpaying credit cards and keeping a high credit balance gives money launderers access to these funds to purchase high value items or to convert the credit balance into cheques.
* Casinos: Cash may be taken to a casino to purchase chips which can then be redeemed for a casino cheque.
* Refining: This money laundering method involves the exchange of small denomination bills for larger ones and can be carried out by an individual who converts the bills at a number of different banks in order not to raise suspicion. This serves to decrease the bulk of large quantities of cash.
* Legitimate Business / Co-mingling of Funds: Criminal groups or individuals may take over or invest in businesses that customarily handle a high cash transaction volume in order to mix the illicit proceeds with those of the legitimate business. Criminals may also purchase businesses that commonly receive cash payments, including restaurants, bars, night clubs, hotels, currency exchange shops, and vending machine companies. They will then insert criminal funds as false revenue mixed with income that would not otherwise be sufficient to sustain a legitimate business.
* Value Tampering: Money launderers may look for property owners who agree to sell their property, on paper, at a price below its actual value and then accept the difference of the purchase price "under the table". In this way, the launderer can, for example, purchase a $2 million dollar property for $1 million, while secretly passing the balance to the seller. After holding the property for a period of time, the launderer then sells it for its true value of $2 million.
* Loan Back: Using this method, a criminal provides an associate with a sum of illegitimate money and the associate creates the paperwork for a loan or mortgage back to the criminal for the same amount, including all of the necessary documentation. This creates an illusion that the criminal's funds are legitimate. The scheme's legitimacy is further reinforced through regularly scheduled loan payments made by the criminal, and providing another means to transfer money.
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