What are the best Money Laundering Schemes?

Money Laundering Definition

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What are the best Money Laundering Schemes?

Best money laundering schemes
Best money laundering schemes

To keep this post quick and easy to read we’ve put all the schemes we can think of in a table and provided links to more content to find out how they work.

We’ve also provided a column explaining how the authorities, or even the banks could find out money was being cleaned.

Read on to find out what are the best money laundering schemes…

SchemeResourcesSectorDetect itLearn more
Cum ExInvestment accounts. Claim tax back on dividend revenue more than once. InvestmentsTrack short selling and same buyer/seller chain repeatedly transacting. Link
Bitcoin or otherCrypto wallet. Wash asset through bitcoin tumbler repeatedly across exchanges and borders. CryptoVery difficult tracing. Repeat buying and selling of Crypto with fiat currency exchanged as cash out. Link
Gift CardPurchase Gift cards with dirty money and sell them on the darknet or on exchange sites for less, cashing out. RetailRepeat purchases of giftcards and cash out receipts into legit accounts.Link
Cash businessA restaurant, gas station, car cleaning business etc.RetailOver average business income. All cash deposits. Deposits from outside the business area. Link
SmurfingPeople to deposit cash.DepositsDeposits away from business area. Multiple under threshold deposits.
Black Market exchangeA currency exchange network. Give dirty money to the exchange who uses it to purchase legitimate business contracts in that country. Country of origin legit business then pays for the contracts in local currency. Exchanger then gives that clean local currency to the original criminal (usually drug trafficker in Sth America) CurrencyRepeat deposits from the same exchanger. Unregistered currency exchange. High cash turnover.
Hawala exchangeSimilar to the above. Unregistered usually Asian market. CurrencySimilar to the above.
Gig economyEmploy a Uber taxi or AirBnB owner to take bogus bookings for a fee. Keep the returned clean money. GigGig business depositing large amounts over their usual amount. Over average refunds from bookings. Vehicle tracking. Link
Service sectorSell bogus services that do not take place in return for dirty money. Service sectorUnusual high value receipts. Out of the norm deposits. Out of the norm business.
Trade businessA registered business. Under or over invoice to transfer cash without product or serviceBusinessPort data. Trading in risk geographies. Customs data. Credit note discrepancies. Out of sector business.Link.
TrustsRegister personal assets in the trust to avoid tax. Planes, yachts. Register in tax havens and do not declare to authorities. Hide as a business asset. BusinessAsset base of trusts registered by nominee or law firms to hide beneficial owner.
Shell companyRegister company and use just to move money through complex transactions and loan arrangements. Have nominee directors to hide your identity or create a chain of businesses to ‘won’ each other with shares below 25% to avoid registration requirements. BusinessComplex and repeated business transaction of high value between offshore business. No natural person identification.
LoansSet up a company offshore as your employer. All payments for your work through the company. Get paid as a loan that you will never settle. They can’t tax a loan. BusinessPayments from offshore business each month with no apparent business conducted.
Real EstateBuy real estate with dirty money and hide behind offshore business as the owner. Avoid tax and clean dirty money. Real EstateHigh cost property purchase for no apparent business reason by a business. Offshore business purchasing it. No absolute beneficial owner.
Rental or renovateBuy and sell real estate within a network to move money. Purchase price improved by ‘renovations’ . Rent it to non-existent people to clean income. Real EstateProperty in a geography nt conected to the business. Frequently offshore beneficial owner.
Private ATMUse dirty money in your atm. Withdrawals to the general public transfer the cash into banking deposits of clean money. BusinessOver average withdrawals. Over average cash deposits in the machine. Unexplained business ‘profits’.
CasinoBuy chips with dirty money, place one bet and cash out with clean. GamblingRepeat deposits from gambling business.
Mirror tradingBuy and sell the same shares through complex web of accounts to maintain net neutrality but spending dirty money and replacing with clean.InvestmentsRepeat spending and returns from brokers with little in terms of revenue difference. Short term investments in what should be a long term position. Link
Risk jurisdictional tradingReceiving or depositing assets in risk jurisdictions. Gold in a location that doesn’t mine it is one example. TradeFrequent transactions with ‘risk’ jurisdictions for no apparent business aim.
InvoicingCreate fake invoices to take legitimate cash out of a business and use personally. Replace with false sales coming in. BusinessRepeated deposits to the same ‘business’ account

Of course for all money laundering schemes there are various databases and tools to deploy to combat them. Be that a fraud or sector database. The key is to employ them in a whole solution so searches are conducted once and do not rely on human interaction to miss-spell or other.

There are many methods to hide dirty money in the legitimate economy. If you suspect someone is laundering money through your business talk to us to help you.

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