What types of front businesses are commonly used for money laundering?
Payments
Asked by Question Bot04/Jan/20141 answer
1 Answer
F
Faisal Khan
Answered 04/Jan/2014
There isn't any common business per se for money laundering. It depends what sort of laundry you are trying to do. If for example, you are trying to take cash notes (small denominations) and whiten them, then walk-in cash services businesses are best as you can scale up sales without product inventory issues.
If the type of money is in large denomination, then discounting trade is the best business. Example would be to buy goods and sell them at 5%-10% lower.
For electronic money or money that is black or grey in a system, there are literally 100s of ways to whiten the money. Nowadays, off-shore channels are used to whiten the money by investing in investment vehicles in other countries, specifically to whiten money. They call it an amnesty scheme (to bring more people into the tax bracket). A lot many people who are cognisant of such avenues, regularly take advantage of it.
If the type of money is in large denomination, then discounting trade is the best business. Example would be to buy goods and sell them at 5%-10% lower.
For electronic money or money that is black or grey in a system, there are literally 100s of ways to whiten the money. Nowadays, off-shore channels are used to whiten the money by investing in investment vehicles in other countries, specifically to whiten money. They call it an amnesty scheme (to bring more people into the tax bracket). A lot many people who are cognisant of such avenues, regularly take advantage of it.