# The hard part of money laundering **URL:** \ **Category:** Factual Questions\ **Created:** [June 19, 2021, 11:10pm UTC](https://boards.straightdope.com/t/the-hard-part-of-money-laundering/944654 "2021-06-19T23:10:00Z")\ **Posts on this page:** 20\ **Page:** 5
**Author:** ![Whack-a-Mole](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/whack-a-mole/32/141_2.png) [@Whack-a-Mole](https://boards.straightdope.com/u/Whack-a-Mole)\ **Post date:** [June 23, 2021, 3:49am UTC](https://boards.straightdope.com/t/the-hard-part-of-money-laundering/944654/81 "2021-06-23T03:49:32Z")
Ages ago I worked as a waiter. While I reported 100% of my tips religiously and without fail let’s just say that not everyone did. ---
**Author:** ![Velocity](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/velocity/32/18006_2.png) [@Velocity](https://boards.straightdope.com/u/Velocity)\ **Post date:** [June 23, 2021, 7:25am UTC](https://boards.straightdope.com/t/the-hard-part-of-money-laundering/944654/82 "2021-06-23T07:25:26Z")
This has me wondering how many employees at a money-laundering business actually realize that it’s for illegal purposes. I’m sure most think they’re working for a perfectly legit place. I’m reminded, tangentially, of how many workers at Bernie Madoff’s thought they were working for a legit employer, all the way until his Ponzi scheme came crashing down. ---
**Author:** ![nightshadea](https://avatars.discourse-cdn.com/v4/letter/n/7ba0ec/32.png) [@nightshadea](https://boards.straightdope.com/u/nightshadea)\ **Post date:** [June 23, 2021, 9:53am UTC](https://boards.straightdope.com/t/the-hard-part-of-money-laundering/944654/83 "2021-06-23T09:53:53Z")
well supposedly you couldn’t tell because other than the supply ordering and not using a bank it ran like a typical McDonalds even McDonalds its self apparently didn’t know …although dad did say he thought it strange that management seemed not to care if it made money or not … but he just chalked it up as "no worries as mcd doesn’t fail so w e don’t need to try too hard " ---
**Author:** ![Crafter\_Man](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/crafter_man/32/458_2.png) [@Crafter\_Man](https://boards.straightdope.com/u/Crafter_Man)\ **Post date:** [June 23, 2021, 10:15am UTC](https://boards.straightdope.com/t/the-hard-part-of-money-laundering/944654/84 "2021-06-23T10:15:36Z")
Every now and then I see a news story about a restaurant customer who leaves a gigantic tip at a restaurant. Here’s an example that happened just a couple weeks ago… a $16,000 tip on a $37 bill. An obvious example of money laundering? > **[Anonymous customer leaves $16K tip at restaurant, tells bartender not to...](https://www.wdtn.com/news/u-s-world/anonymous-customer-leaves-16k-tip-at-restaurant-tells-bartender-not-to-spend-it-all-in-one-place/)** > > Michael Zarella, the owner of the Stumble Inn Bar and Grill, says the anonymous diner did not reveal his motivation for leaving the whopping gratuity after his June 12 visit. ---
**Author:** ![DPRK](https://avatars.discourse-cdn.com/v4/letter/d/4491bb/32.png) [@DPRK](https://boards.straightdope.com/u/DPRK)\ **Post date:** [June 23, 2021, 10:26am UTC](https://boards.straightdope.com/t/the-hard-part-of-money-laundering/944654/85 "2021-06-23T10:26:47Z")
> [@Crafter\_Man](#): > > An obvious example of money laundering? I don’t see how it could be, unless there is an established pattern, or a reason why someone would try to launder a mere $16000 plus all eight bartenders are in on it (since they allegedly received the tips). ---
**Author:** ![Babale](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/babale/32/15666_2.png) [@Babale](https://boards.straightdope.com/u/Babale)\ **Post date:** [June 23, 2021, 11:03am UTC](https://boards.straightdope.com/t/the-hard-part-of-money-laundering/944654/86 "2021-06-23T11:03:00Z")
> [@nightshadea](#): > > supposedly until the late 90s, it was the only McDonalds that went out of business… Google seems to think plenty of McDonald’s have gone out of business, and I didn’t see anything about a franchise location being used as a mafia front. ---
**Author:** ![Babale](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/babale/32/15666_2.png) [@Babale](https://boards.straightdope.com/u/Babale)\ **Post date:** [June 23, 2021, 11:08am UTC](https://boards.straightdope.com/t/the-hard-part-of-money-laundering/944654/87 "2021-06-23T11:08:23Z")
> [@Dewey\_Finn](#): > > Are you saying people are buying houses for literal cash, meaning piles of ten- and twenty-dollar bills? Generally in the real estate world when you say “buying for cash” you don’t literally mean physical cash, but cash in the accounting sense - current assets that are immediately accessible, like money in a bank account. It just means they aren’t financing the purchase of the home, they’re paying for it in full. ---
**Author:** ![cincinnatus](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cincinnatus/32/7990_2.png) [@cincinnatus](https://boards.straightdope.com/u/cincinnatus)\ **Post date:** [June 23, 2021, 11:42am UTC](https://boards.straightdope.com/t/the-hard-part-of-money-laundering/944654/88 "2021-06-23T11:42:47Z")
This laundering of cash through a laundromat puzzles me, You have a limited number of washing machine, and limited time the place is open. Some arithmetic reveals a maximum income possible, and a maximum income possible for related services. Another way: It’s not difficult to check the water usage and again use arithmetic to determine the number of actual washer loads. The gross income seems very easy to estimated pretty closely. No warrants needed. ---
**Author:** ![Chronos](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chronos/32/134_2.png) [@Chronos](https://boards.straightdope.com/u/Chronos)\ **Post date:** [June 23, 2021, 12:04pm UTC](https://boards.straightdope.com/t/the-hard-part-of-money-laundering/944654/89 "2021-06-23T12:04:30Z")
Right, if anyone actually bothers to check those things. Which is why the first goal of laundering is to avoid notice from anyone who cares. ---
**Author:** ![bob\_2](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bob_2/32/3341_2.png) [@bob\_2](https://boards.straightdope.com/u/bob_2)\ **Post date:** [June 23, 2021, 12:04pm UTC](https://boards.straightdope.com/t/the-hard-part-of-money-laundering/944654/90 "2021-06-23T12:04:41Z")
From what I read in the news, most MLs are caught because they have no visible source of income to support their extravagant lifestyles. The boss of a few small businesses may well run a BMW and live in a nice house, but if he trades up to a Maserati and a gated mansion, he will attract unwanted attention. ---
**Author:** ![k9bfriender](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/k9bfriender/32/3283_2.png) [@k9bfriender](https://boards.straightdope.com/u/k9bfriender)\ **Post date:** [June 23, 2021, 12:16pm UTC](https://boards.straightdope.com/t/the-hard-part-of-money-laundering/944654/91 "2021-06-23T12:16:02Z")
And it certainly isn’t in the bar’s interest either, as that means that they have to pay payroll taxes on that $16,000 that they cannot touch. > [@cincinnatus](#): > > You have a limited number of washing machine, and limited time the place is open. Some arithmetic reveals a maximum income possible, and a maximum income possible for related services. There’s the maximum it can do, and there’s how much it actually does, and in between that, you can play. > [@cincinnatus](#): > > It’s not difficult to check the water usage and again use arithmetic to determine the number of actual washer loads. It’s not difficult, once you have a warrant. The idea is to keep suspicion down so that they don’t have probable cause to get a judge to sign off on one. ---
**Author:** ![Francis\_Vaughan](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/francis_vaughan/32/3093_2.png) [@Francis\_Vaughan](https://boards.straightdope.com/u/Francis_Vaughan)\ **Post date:** [June 23, 2021, 12:19pm UTC](https://boards.straightdope.com/t/the-hard-part-of-money-laundering/944654/92 "2021-06-23T12:19:25Z")
> [@Dewey\_Finn](#): > > Are you saying people are buying houses for literal cash, meaning piles of ten- and twenty-dollar bills? Interestingly the previous owner of my parents house paid for the house with a suitcase of cash. Needless to say this caused some comment. However it was legit. She was a widow whose husband has been killed in an industrial accident, and the cash was the payout from his death. She didn’t trust banks\*, and kept all her money as cash. This was the early 60’s. One could not imagine this happening now. \*I think her heritage went back to a time and country when bank failings were a bit more common. ---
**Author:** ![DPRK](https://avatars.discourse-cdn.com/v4/letter/d/4491bb/32.png) [@DPRK](https://boards.straightdope.com/u/DPRK)\ **Post date:** [June 23, 2021, 12:20pm UTC](https://boards.straightdope.com/t/the-hard-part-of-money-laundering/944654/93 "2021-06-23T12:20:12Z")
> [@Babale](#): > > > [@Dewey\_Finn](#): > > > > Are you saying people are buying houses for literal cash, meaning piles of ten- and twenty-dollar bills? > > Generally in the real estate world when you say “buying for cash” you don’t literally mean physical cash, but cash in the accounting sense - current assets that are immediately accessible, like money in a bank account. It just means they aren’t financing the purchase of the home, they’re paying for it in full. I know a guy in Brasil who bought an apartment for a literal pile of US $100 bills, so it has happened. ETA the piles of cash were withdrawn from a legitimate bank, so ??? in this case (I know nothing about the _seller_) ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [June 23, 2021, 12:44pm UTC](https://boards.straightdope.com/t/the-hard-part-of-money-laundering/944654/94 "2021-06-23T12:44:30Z")
> [@Babale](#): > > > [@Dewey\_Finn](#): > > > > Are you saying people are buying houses for literal cash, meaning piles of ten- and twenty-dollar bills? > > Generally in the real estate world when you say “buying for cash” you don’t literally mean physical cash, but cash in the accounting sense - current assets that are immediately accessible, like money in a bank account. It just means they aren’t financing the purchase of the home, they’re paying for it in full. Sure but that doesn’t seem to involve money laundering, since you’re moving money from one bank account to another. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [June 23, 2021, 12:53pm UTC](https://boards.straightdope.com/t/the-hard-part-of-money-laundering/944654/95 "2021-06-23T12:53:09Z")
> [@Crafter\_Man](#): > > Every now and then I see a news story about a restaurant customer who leaves a gigantic tip at a restaurant. Here’s an example that happened just a couple weeks ago… a $16,000 tip on a $37 bill. An obvious example of money laundering? Also, this $16,000 tip appears to have been on a debit or credit card, so it’s a bank-to-bank transaction, which I don’t think are useful for money laundering. ---
**Author:** ![Si\_Amigo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/si_amigo/32/2877_2.png) [@Si\_Amigo](https://boards.straightdope.com/u/Si_Amigo)\ **Post date:** [June 23, 2021, 1:10pm UTC](https://boards.straightdope.com/t/the-hard-part-of-money-laundering/944654/96 "2021-06-23T13:10:37Z")
It kind of amazes me to think that people seem to expect the IRS to be digging into how businesses are keeping their books, they don’t unless they suspect you of underpaying. If you are paying taxes and then one year your rate of paying taxes goes up the IRS says hell yes business owner, keep sending in more taxes. Not we must investigate this extra source of tax revenue and audit your business. That’s not how it works in the real world. And the Feds have to have a warrant for your tax returns, they can’t just go ask for them. ---
**Author:** ![Mama\_Zappa](https://avatars.discourse-cdn.com/v4/letter/m/71e660/32.png) [@Mama\_Zappa](https://boards.straightdope.com/u/Mama_Zappa)\ **Post date:** [June 23, 2021, 1:17pm UTC](https://boards.straightdope.com/t/the-hard-part-of-money-laundering/944654/97 "2021-06-23T13:17:27Z")
> [@bob\_2](#): > > From what I read in the news, most MLs are caught because they have no visible source of income to support their extravagant lifestyles. There’ve been threads here in the past along those lines - “what would you do if you found a huge pile of cash?”. I seem to recall that the consensus was to keep working at SOMETHING, so you’d have the ability to have a bank account with unquestionable deposits for larger purchases (house, car etc.), and then use the physical cash to pay for whatever else you could manage. Groceries, clothes, some travel expenses etc. You could probably get away with making small cash deposits, on a very sporadic basis, as you’d want to avoid running afoul of IRS reporting rules. Spy Aldrich Ames lived a much more lavish lifestyle (very expensive house, among others) as a result of his extracurricular income. That was before the IRS rules on bank deposits, I think, so he was likely far more able to deposit his profits for such large purchases. It wasn’t the house itself that triggered the investigation though, that was more of an “in hindsight” kind of thing. ---
**Author:** ![Elmer\_J.Fudd](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/elmer_j.fudd/32/1211_2.png) [@Elmer\_J.Fudd](https://boards.straightdope.com/u/Elmer_J.Fudd)\ **Post date:** [June 23, 2021, 1:22pm UTC](https://boards.straightdope.com/t/the-hard-part-of-money-laundering/944654/98 "2021-06-23T13:22:15Z")
Almost a hundred replies and nobody has made a crack yet that the coins are the hard part of laundering money? ---
**Author:** ![Mama\_Zappa](https://avatars.discourse-cdn.com/v4/letter/m/71e660/32.png) [@Mama\_Zappa](https://boards.straightdope.com/u/Mama_Zappa)\ **Post date:** [June 23, 2021, 1:26pm UTC](https://boards.straightdope.com/t/the-hard-part-of-money-laundering/944654/99 "2021-06-23T13:26:47Z")
Well, they can be hard on the washing machines. Bills are much gentler - and from our occasional attempts, they hold up surprisingly well even when tossed into the dryer. ---
**Author:** ![DPRK](https://avatars.discourse-cdn.com/v4/letter/d/4491bb/32.png) [@DPRK](https://boards.straightdope.com/u/DPRK)\ **Post date:** [June 23, 2021, 1:29pm UTC](https://boards.straightdope.com/t/the-hard-part-of-money-laundering/944654/100 "2021-06-23T13:29:15Z")
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