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Example of extracting money out of stolen goods: Selling a stolen phone. Example of money laundering: I have illegitimately earned money, I funnel it through a
by tjbiddle 9y ago
Example of extracting money out of stolen goods: Selling a stolen phone.
Example of money laundering: I have illegitimately earned money, I funnel it through a service which then gives me "clean" money.
I wouldn't say it's money laundering, but I wouldn't say it's not money laundering. Is there a word for where it's kinda-both?
- notyourday 9y agoThe fundamental characteristic of money laundering is that after money is laundered it is in fact clean money and it is not possible for another entity to reach out and get it because the entity that a claim on the dirty money. That's why those with dirty money are willing to pay 20-40% for it. That's for example, why uncut diamonds are so popular - diamond sourcing business is largely a cash business operating in the grey area - dealers act as mixers of currency sell uncut diamonds for $X. The buyer takes the diamond to a jeweler, gets a finished product, sells it to a different jawler for $Y where $Y is 20-40% lower than $X and that $Y is nearly impossible to link to the initial $X. Carders cannot do this because no one in businesses like this takes credit cards as the transactions simply gets reversed by the issuing bank at which point whoever was the first hop of the transaction gets money crawled back from him/her.