(U.S. Criminal Law/Generally) Thanks to the popular crimes shows money laundering has become a familiar term among the general public. However, despite this familiarity, most of the people will not be able to provide much information about this offense.
Money laundering definition
It is a federal offense. The term money laundering refers to the method of concealing the origin of illicit money and making it appear legitimate to the public. The person who is committing this offense is referred as money launderer. In case, this method is done properly the launderer gets the entire control over the money.
Sources of illicit money
The illicit money can be obtained from different sources. Drug trafficking is a common method of obtaining such money. Blackmailing is another common method. Money obtained from ransom can be treated as illegitimate money too.
Different stages of money laundering
There are three effective levels of money laundering process, placement, layering and integration.
Placement – This is the beginning of money laundering process. The procedure of washing the black money and converting it into white money is known as cash-intensive process. The placement of illicit money can be done in different ways. Currency exchange is a common method using which the launderers set the motion of the laundering free. Blanding fund is another way. Here, the laundering takes place by mixing different finds together and thus hiding the real source of the illegal money. Asset purchasing is an easy method of laundering money. This can be referred to classic as well. To pull this off successfully, the launderer needs to have experience and expertise.
Layering – The objective of this stage is to make the source of money more difficult to find. This stage makes the laundering process hard to discover also. To hide the money, the launderers detach it from the source. Therefore, the launderers send the money to the offshore bank accounts. Sometimes they buy assets and then sell the assets to create layers in order to hide the money.
Integration – This is the last stage of money laundering. In this stage the hidden money returns and enters the legal economy. This entrance occurs through the banking system.
Money laundering penalty
Money laundering is a punishable offense. If you are accused of committing this, you will have to face legal consequence. To defend yourself and make federal appeal to the court, you need to get in touch with the competent lawyers with experience in handling similar legal issues. Do not delay seeking legal help as money laundering charge can be severe.
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