Money Laundering

Money laundering is the process of disguising and concealing the source of illegally obtained money. This is done by transferring money through a series of complex transactions and bank accounts in order to make it look like the funds came from a legitimate source.

The basic formula for money laundering is:

Dirty Money + Complex Transactions = Clean Money

For example, a drug dealer may transfer their illegally obtained money to a foreign bank account, and then use that money to purchase a car in their country. The car purchase then appears to have been paid for with legitimate funds instead of drug money.