What is money laundering and what are some examples?

Question by Jedi: What is money laundering and what are some examples?
I’m trying to understand what money laundering is. Can someone explain it to me in laymen’s terms and give me a couple examples? Thanks!

Best answer:

Answer by ranger_co_1_75
Money Laundering is creating a fake source for money from crime so you can spend it without the government asking where you got the money. In other words you cleaned up dirty money so you could spend it.

Example, Drug dealer doesn’t work at regular job, makes $ 1 million from sales of drugs. He can’t buy a house or car or boat, etc with the money. If he does the government will get suspicious and start investigating the drug dealer.

So the Drug Dealer opens a bar / tavern and pads the books to show huge profits on the tavern, and pays his taxes on the money. It now looks like he earned the money, and can spend it without anyone asking where it came from. He cleaned up the dirty money so he could spend it.

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