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