Some money isn’t earned in a legal manner, which means that it can’t lawfully be put into the legal financial system. Individuals who have that money may try to find a way that they can get it into bank accounts so they can use it the same as any other money.
The need to do this can lead to money laundering, which is the process of funneling illegally earned money through various steps so that it appears as though it was earned legally. Ultimately, the money is placed into the country’s financial system in the same manner as lawfully earned funds.
What is the process?
Money laundering happens through shell companies, real estate transactions and altering trade invoices. Sometimes, people put it through cryptocurrency transactions. Special events, such as concerts at nightclubs, can also be the basis of money laundering. Some money laundering schemes use many of these strategies.
There are three stages of money laundering. These are placement, layering and integration. The placement stage involves buying assets or funneling money into businesses. Layering uses strategies like using shell companies or wiring funds between several accounts. Integration occurs when the money is reintroduced into the legal financial system as legitimate funds.
Anyone who’s facing money laundering charges should ensure they explore their options for a defense strategy. Oftentimes, these cases are complex and contain a lengthy paper trail, which means that it will be beneficial for defendants to work with someone who can assist them with developing the defense and presenting it in court.