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Author did some basic research on ML & AML and has no real idea what they're talking about. Flip side of all cash business is tax evasion; meaning the owner do

by nxzero 10y ago

Author did some basic research on ML & AML and has no real idea what they're talking about. Flip side of all cash business is tax evasion; meaning the owner does not report all the gross revenue and the spends the cash in a way that it's not traceable back to them. Another reason to have access to the cash flow of an all cash business is to launder counterfeit currency; aka someone gives you a $20 an the business gives them back fake bills for the change. Most interesting ML method I've heard of is book on hacking public databases to create valid fraudulent identifies to launder cash through: https://www.amazon.com/Baby-Harvest-terrorist-financing-laundering-ebook/dp/B013AZ6MKS https://www.amazon.com/Baby-Harvest-terrorist-financing-laun...

gist 10y ago
> meaning the owner does not report all the gross revenue and the spends the cash in a way that it's not traceable back to them. Exactly. For example taking money and buying expensive restaurant meals or liquor is not traceable. Or jewelry (which can be sold later). Also having home renovations whereby paying part by check and the rest under the table is also not (easily) traceable. Or paying employees in cash. I also don't buy into the idea that in actual practice banks are going out and seeing how many customers they have at their place of business other than in a cursory way by chance. Also whether they are writing checks or not, small businesses often operate out of multiple bank accounts. They could be transferring the money to an account that they use to write checks or even legitimately making deposits into multiple accounts.
unsignedqword 10y ago
Hacker News - the only place on the internet where the term 'ML' refers to at least 3 or 4 different things.
- finid 10y ago
  Yes, when you use an acronym on a page where it's not been used and defined, please tell us what it means. The only meaning of ML that comes to mind, mine at least, is Machine Learning. Is that what it means?
  - jandrese 10y ago
    I have no idea what ML could stand for when discussing an article Money Laundering. It is a mystery.
  - unsignedqword 10y ago
    'Money Laundering,' I believe

by nxzero 10y ago

gist 10y ago

> meaning the owner does not report all the gross revenue and the spends the cash in a way that it's not traceable back to them. Exactly. For example taking money and buying expensive restaurant meals or liquor is not traceable. Or jewelry (which can be sold later). Also having home renovations whereby paying part by check and the rest under the table is also not (easily) traceable. Or paying employees in cash. I also don't buy into the idea that in actual practice banks are going out and seeing how many customers they have at their place of business other than in a cursory way by chance. Also whether they are writing checks or not, small businesses often operate out of multiple bank accounts. They could be transferring the money to an account that they use to write checks or even legitimately making deposits into multiple accounts.

unsignedqword 10y ago

Hacker News - the only place on the internet where the term 'ML' refers to at least 3 or 4 different things.

finid 10y ago
Yes, when you use an acronym on a page where it's not been used and defined, please tell us what it means. The only meaning of ML that comes to mind, mine at least, is Machine Learning. Is that what it means?
- jandrese 10y ago
  I have no idea what ML could stand for when discussing an article Money Laundering. It is a mystery.
- unsignedqword 10y ago
  'Money Laundering,' I believe