Hey Guys we the team of HELPING SURFERS INC. has come up Money Laundering Part 2 as promised. We are going in deep for why is money laundering a part of criminal activity? In this part we are going to share information about these.
Note- HELPING SURFERS INC. Do not promote any illegal activities.
Note- HELPING SURFERS INC. Do not promote any illegal activities.
Why is Money Laundering a Part of Criminal Activity?
Money laundering is essential to the operation of any criminal activity that is long-term and lucrative. Most criminal transactions are handled in cash because only cash payments are assured to be untraceable at the point of sale. However, cash can quickly accumulate to the point that it becomes a liability.
For most criminal enterprises, the only alternative to money laundering is to maintain large supplies of physical cash and move it in amounts too small to attract attention. This leaves those involved at constant risk of having physical stockpiles of cash discovered and seized.
Even before the days of electronic monitoring, it was difficult to move large sums without attracting attention from law enforcement and tax authorities. In recent years, data analytics and machine learning have made the task of identifying illicit money even easier.
For many criminals, masking the money so that it appears legitimate is the only way to deal with large sums for a long time.
What Criminal Activities are Linked to Money Laundering?
Nearly any crime that involves large amounts of money will depend on money laundering to make it possible to spend the proceeds. Research shows that some of the crimes most commonly correlated with money laundering include…
- General Fraud
- Narcotics Trafficking
- Theft & Embezzlement
- Tax & Customs Violation
- Cybercrime
These crimes account for hundreds of billions in losses to countries around the world. The developing world alone is believed to lose close to 1 trillion dollars every year in money that is generated from criminal activity and then funneled out of the country in laundering schemes.
Our next part of this series is based on- The Institutions Used for Money Laundering, and its Schemes.
