What is money laundering?

By Tim Bennett

published 30 March 2012

in Videos

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

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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.

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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Money laundering