Have you ever wondered how criminals clean up dirty money? That trick is called money laundering, and it’s done in many ways. Many of these schemes are so smart that they even trick big businesses and financial institutions. They are complicated and difficult to detect but once you know how they function, it is easier to identify the indicators.

This article takes a look at the world’s most famous examples of money laundering. You’ll also learn how criminals and large corporations use a host of schemes to misuse their dirty money. Let’s examine how these schemes operate.

How Does Money Laundering work?

Money laundering refers to the process of making illegal money appear clean and legal. That is when they utilize various money laundering techniques, such as transferring money through banks, businesses, or even virtual platforms. 

A common money laundering method is to make smaller deposits of a larger sum to avoid getting noted. Another type is moving money across various nations. Such tricks enable criminals to disguise dirty money as clean and spendable.

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Most Common Examples of Money Laundering 

There are many forms of money laundering, and criminals will manipulate multiple software to hide their money from authorities. A money laundering example is using shell companies to transfer dirty money. 

One more common money laundering scheme is buying luxury products like vehicles, homes or expensive jewelry and selling them to obtain clean money. Other criminals may use online transaction monitoring  to launder dirty money with legitimate business revenues.

Money Laundering For Cash Business

Cash businesses are a common and effective way to launder money as they handle large amounts of cash every day. Restaurants, nightclubs or small retail shops can blend illegal cash in with legitimate sales and wash it. 

Due to this, this money laundering technique is a little hard to track as the cash transactions do not always leave a trace. In such a case one money laundering example, such as a business reporting greater revenue than it made, is to wash illegal cash.

Real Estate Money Laundering

Real estate is one of the most popular money laundering schemes for washing illegal money. Very rich men buy luxurious homes or lands and then sell them to show that they are clean. 

This is a classic money laundering arrangement because it mixes illegal cash with legitimate property transactions. However, many big money laundering case studies prove that man has learned to get around this bait and move great quantities of money without drawing eyes.

Gambling Money Laundering

Casinos are a method criminals use to clean their money. They purchase chips using illicit cash, play a bit, then cash out and receive clean money as winnings. This money laundering method is very simple due to the high cash flow in gambling. 

How is this done and what is money laundering with example? This is a perfect example of using gambling to launder illegal money and convert it into legal winnings. Although all sorts of money laundering in casinos and the rest of the world have come to light.

Cryptocurrency Laundering

Cryptocurrencies such as Bitcoin have simplified money detection. Criminals hop illegal money between various crypto wallets and exchanges to conceal its source. The scheme is increasingly common because crypto transactions can be difficult to trace. 

One of the most commonly cited examples of crypto money laundering is when hackers or criminals use crypto to circumvent cross-border banking systems to move stolen money.

Art Money Laundering

It is easy to over-price and sell without drawing questions or red flags about their cash flows. In this money laundering scheme, they purchase large abstract paintings (with dirty money) and resell them to make the money look clean. It is a usual practice of money laundering by soiled rich people and even large corporations. 

One of the most famous examples of money laundering is art dealers and auction houses unwittingly helping criminals launder their dirty money. One of the smartest tricks criminals play is money laundering, as the following art laundering example shows. There are countless examples of money laundering using art to launder dirty funds.

How Can FinTech Help Financial Institutions Stop Money Laundering?

Banks and other financial entities have a major role in preventing money laundering operations. They can apply stringent rules to verify the source of funds and report anything suspicious. Utilizing top level software to keep an eye on abnormal transactions is one of the best money laundering techniques that can block out crime. 

There are a lot of examples of money laundering in which criminals have put their hands on banks to transfer illegal money, so security checks are really valuable. That is why knowing about money laundering with an example helps banks and companies strengthen methods to prevent money laundering. 

Strict rules allow financial institutions to stop many money laundering operations before they even happen. The importance of money laundering can be eradicated to secure businesses and an economy from financial crimes. Understanding these schemes allows the identification of illicit actions.