May 18, 2022 10:27 pm

Money laundering!? How do they do

If anyone has watched the series Ozark, they will be able to see the basic principles of money laundering. But if anyone hasn’t seen it yet The author highly recommends it for those who love money and the twists between accountants and drug dealer mafia.

Try to picture it. If we are the godfather who runs underground business government officials or politicians who ‘Hot water bill’ from the mega project The vast majority of these illegal money is in the form of cash, in the hundreds of millions or billions. Because these transfers via bank, prompt pay or pay by credit card. This might lead to the question of a hundred and eighty-nine thousand, as to why that person’s account, this gentleman, had a disconcertingly large amount of money. It is also easier to trace the financial path than cash.

But moving money in banknotes is not a problem. The main complication is the weight of the banknotes, which makes moving cash very inconvenient. For example, a 1,000 baht banknote in the amount of 1 million baht will weigh about 1 kg, but if it is a small banknote, for example 100 baht, it will be even heavier. Think of a big drug dealer who earns cash, some 100 baht per banknote, some 500 baht, a total of tens of millions or hundreds of millions of baht per day. Those funds would be enormous and create problems in transport and storage.

If there is an alternative These illicit funds are transformed into high-priced assets that are easily portable. whether it is a luxury watch or precious gems before delivery for the convenience of both parties

Money laundering is a crime for white collar people. (White-Collar Crime) The perpetrators are often luxurious personalities. It is said that when submitting a job application, there are only people with open arms. Since the owner of a start-up company who is preparing to issue shares for sale to the public Graduate School of Economics Harvard University Speaker of the House of Representatives in the United States and most recently, a group of executives at a giant bank in Denmark.

Money laundering is, of course, a far-off affair for us mere mortals, and even by financiers sometimes see it as a difficult legal matter. But the bank is the first door if dirty money gets in. The rest is fine. because the money was made legal and can be sent to anyone with just a click of a finger Major effects of money laundering on society and the economy is to make the offenders have a comfortable life because of the huge compensation.

As for those who do honest work, they can only stare wide-eyed. And keep your head down and keep working!

3 steps to clean dirty money

After getting a large pile of cash from illegal activities Money launderers have to take three steps to convert those cash into clean money. with the following steps

1. Put money into the system (Placement). This is the stage with the highest risk. Because it involves bringing huge amounts of cash into the accounts of legitimate financial institutions. in many countries Banks are obliged to report high-value cash transactions, for example, in Thailand, banks are required to report cash deposits exceeding 2 million baht to the Anti-Money Laundering Office (AMLO).

There are many ways to bring money into the system. From gradual or smurfing, using legal gaps that dictate the minimum amount of money that must be reported to regulators. like the example above Money launderers will divide or gradually deposit 1,999,999 baht in cash every day to put dirty money into the system.

Another popular option is money laundering through the establishment of a shell company, which is a company set up specifically to launder money. or a legitimate company They are usually cash-related businesses such as gambling establishments or pubs, where money launderers create fake receipts and put dirty money into the system using the company as a foreground. as if those money came from earning in good faith

last choice Many of you may be familiar with opening a deposit account with a bank in the peculiar country of Panama. or the Cayman Islands These countries have banking secrecy laws that allow money launderers to transact anonymously. Opening an account in these countries is also a potential tax evasion for millionaires and multinational corporations.

2. Layering This step has the sole goal of preventing anti-money laundering agencies from locating the source of those funds. by transferring money many times change the transfer amount Changing account names, banks, even countries and currencies (including cryptocurrencies like Bitcoin) sometimes includes the purchase of high-value assets such as houses and land. expensive watch or precious gems before converting back to bank deposits again

3. Reborn as clean money (Integration) final step is to bring the hidden money into the pocket of the real owner through legally documented transactions such as payments for goods and services but without actual delivery The buyer is a money launderer. The seller will own the real money. Those dirty money will be reborn as clean money. And it is extremely difficult to blame the owner of the money. If there are no clear enough financial traces

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