In the 1920s, a mafia in Chicago opened a laundry. When he calculates laundry income every day, he will mix illegal income with laundry income and then pay taxes to the tax authorities. After deducting the tax payable, "black money" was "washed white" and became his legal income.
Second, the meaning of money laundering
Money laundering, commonly known as "money laundering", is usually the act and process of concealing and disguising the source and nature of illegal funds and transforming them into seemingly legitimate funds by some means.
Money laundering is a serious economic crime, which not only undermines the principle of fairness and justice in economic activities, orderly competition in market economy, the reputation and normal operation of financial institutions, but also threatens the security and stability of the financial system. In addition, money laundering is linked to serious criminal crimes such as drug trafficking, smuggling, terrorist activities, corruption and tax evasion, which poses a serious threat to a country's political stability, social stability, economic security and the security of the international political and economic system.
Third, the steps of money laundering
The first stage: deposit, which is the first link of money laundering, is to deposit the illegal income of crime into financial institutions by deposit, wire transfer or other means. Its characteristic is to keep the proceeds of crime as other forms that are easy to grasp and do not look particularly suspicious. For example, smuggling a large amount of cash, converting stolen money into deposits in financial institutions so as to be confused with legal deposits, diversifying deposits or conducting commercial transactions, and other ways to place stolen money. After the storage stage, the criminals' illegal gains are preliminarily processed, which provides conditions for the smooth implementation of further money laundering and becomes the basis of the whole money laundering activity.
The second stage: cover-up, which is the specific process of "cleaning" money, is also the core of money laundering. At this stage, criminals use various means to transfer illegal gains back and forth in different countries and regions, take various forms to make illegal gains put on a legal coat, and blur the relationship between illegal gains and criminal gains. For example, through banks, insurance companies, securities companies, gold markets, automobile markets and even street retail, complex transaction levels are created, multiple transfers or transactions are made, and even anonymous transactions are taken to deliberately deceive or evade auditing, thus cutting off the connection between illegal funds and their sources. The main purpose of this stage is to cover up and conceal the source and nature of illegal gains, so as to put on a legal coat.
The third stage: integration, which is the last link of money laundering activities, has also been vividly described as "spin-drying", even if it is illegal, it has become legal. At this stage, criminals, in the name of legal property, transfer the divided property whose illegal nature and source are difficult for ordinary people to the name of legal institutions or individuals who have no obvious connection with criminal groups or criminals, and put it into normal social and economic activities. In this way, criminals can freely control the proceeds after washing, squander enjoyment and commit new crimes, even terrorist crimes.
Four. Money laundering law
In order to prevent money laundering activities, maintain financial order and curb money laundering crimes and related crimes, the Anti-Money Laundering Law of People's Republic of China (PRC) is formulated. The 24th meeting of the Standing Committee of the 10th NPC of People's Republic of China (PRC) was adopted on June 36, 2006 and implemented on June 36, 2007.
On April 5, 2020, the People's Bank of China held a video conference on anti-money laundering in 2020. The meeting pointed out that the revision of the anti-money laundering law was officially launched. We should take the revision of the Anti-Money Laundering Law as the main line and comprehensively improve the anti-money laundering system. Strengthen supervision and further improve the effectiveness of anti-money laundering supervision.