I asked another question earlier today about how the Patriot Act affects int’l business here. .
Now I need to know exactly how money laundering works, and then figure out how the Patriot Act is supposed to address this. Plus I’d like to know how in addressing this issue the Patriot Act gives headaches to law-abiding citizens doing international wire transfers, etc.
I am doing a research paper on international finance and this is one of my topics to touch on, but I don’t know where to begin.
Well, you know, money laundering is illegal, so putting a step-by-step description of money laundering up on The Straight Dope Message Board is Officially frowned upon.
Many Mods and Admins would step all over each other to not only shut the thread, but delete it, and probably ban the poster as well.
I get your point, but please take off the junior-mod hat. Report this is you must, but I’ll wait for their opinion.
To actually launder money I am assuming you would:
A) Have to have a shit-load of money from illegal sources to start with
B) Be in a foreign location
C) Have numerous businesses and/or bank accounts
D) ???
The process can be described in general terms that can give light to how it is done and then how the Patriot Act sepcifically attempts to address the issue. As in “Foreign company A issues an invoice to offshore company B, which then pays to bank account C and then A writes-off the bill as unpaid. The Patriot Act attempts to restrict this by…” Not really analogous to a step-by-step pipe-bomb recipe that would ban someone, ne?
I’m not a tattletale, and I’m not playing junior Mod. Just trying to offer friendly advice is all.
I don’t think you actually have to have B, though I can imagine where it might come in handy for covering your “backtrail” though multiple jurisdictions. I think A & C would suffice, if the businesses in C were of sufficient scope to cover the amount of money you’re trying to disguise.
For instance, a small, cash-only neighborhood pizza parlor or take-out stand probably wouldn’t suffice to launder millions of dollars.
Oddly enough, after my Mom died earlier this year, I had problems with a financial institution, which cited the Patriot Act as the reason they wouldn’t recognize my legitimate authority (by Will, Living Trust and official death certificates) to now handle the account in question.
When I asked them in what way this [PA] applied, they mentioned money laundering.
Since the account was a vehicle loan, and therefore a debt, I didn’t really see how.
You may run across the amusing term “smurfing,” which is the process of taking a large sum of money and depositing it in chunks of $9,990 or so in various banks around the country in order to avoid triggering federal reporting laws that kick in at $10,000.
