What is money laundering?

Tim Bennett explains what money laundering is, and how you can avoid getting caught up in it.

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Tim Bennett explains what money laundering is, and how you can avoid getting caught up in it.

What is a Ponzi scheme?

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What is insider trading?

Money laundering

This can be done via "layering" transactions designed to conceal the origin of the "hot" money. A classic target for this type of transaction would be eurobonds, which are not personally registered, making ownership harder to trace. Having done a number of layering transactions, the criminal will aim to integrate the sale proceeds from the last one back into the economy by spending the now "clean" money.

Since money laundering is connected with serious crime, the penalties are stiff a maximum of 14 years in prison, coupled with an unlimited fine.

Entry from MoneyWeek's Financial glossary.

Tim Bennett

Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.

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