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The business records a high number of sales (or high value sales) and hence dirty money can be used as clean incoming money. The high staff numbers indicate ei
by jayceedenton 4y ago
The business records a high number of sales (or high value sales) and hence dirty money can be used as clean incoming money.
The high staff numbers indicate either a) staff can accumulate and no-one is really bothered because the normal economics don't apply, or b) more staff implies a bigger business (to anyone looking at the books), which means more money can be laundered without raising suspicion. Efficiency just depends on how much cash you can imply this coffee shop makes, so more staff is a good thing.
- empiricus 4y agoI imagine this way you can launder on the order of 10-100k dollars/month? With 30-40% payed for taxes and employees?
- qzw 4y agoSome number of the staff may also be from the “questionable” side of the business. They don’t have to do any actual restaurant work but will get some clean income as part of their total compensation. So the laundering happens at more than one level and could be more efficient overall than at first glance.
- BoardsOfCanada 4y agoThere is something I don't understand: If you pretend do have a lot of customers (to feed illegal income into pretend purchases), why not also pretend to have a lot of employees? At least they don't need to be present, since this seems to be what make people suspicious.
- bluehatbrit 4y agoI'm just guessing, but if someone does decide to investigate your business I assume they'll start by checking the people in it. If they find you've faked employment records then the gig will be up pretty quickly. Employing people keeps the facade up in the same way as actually serving food and drinks. I suppose if your "other" side of the business has people working for it, then it's not going to change the financials much to have them on the books of the restaurant.
- auggierose 4y agoBecause employees have easily checkable social security numbers.
- bombcar 4y agoYou also hire family members of your “ real employees “ so that they have legitimate income also.