1 cash smuggling. Many countries do not have a cash transaction reporting system, so it is an important way of money laundering to bring the proceeds of crime into such countries through smuggling and then deposit them in banks, which is also one of the important reasons why countries strictly restrict the entry and exit of cash.
2. Disperse a large amount of cash to the bank. Some countries have established a strict cash transaction reporting system, and banks must report cash transactions exceeding the limit to the anti-money laundering intelligence department. Therefore, money launderers often split a large amount of cash into amounts below the reporting standards and deposit them in banks to avoid supervision.
3 Use cash-intensive industries. More and more money launderers use cash-intensive industries to launder money. Under the guise of casinos, entertainment places, bars, and gold and silver jewelry stores, they declare the proceeds of crime as legitimate income from their operations through false transactions.
Buy all kinds of movable or immovable property directly. Direct purchase of real estate, high-value vehicles, antiques, artworks and various financial securities. And then the cash deposited in the bank during the resale period gradually evolved into legal monetary funds.
Using the securities industry and insurance industry to launder money. Due to the huge amount of trading funds in the securities industry, the variety and complexity of financial instruments and transactions, and the formation of the global capital market, it provides the best cover for money laundering. Many money laundering crimes are carried out through securities transactions including stocks, bonds and futures. There are also many money launderers who buy high insurance in the insurance market and then return the premium to criminals in the form of surrender or surrender to cover up the real source of criminal income.
6. Take advantage of excessive security measures for personal assets in countries and regions such as offshore financial centers and bank secrecy paradise. In some countries and regions, either anonymous companies are allowed to be established or excessive confidentiality measures are taken for personal assets, which makes it easy to hide the true source of criminal income after entering these areas.
7. Carry out obviously unfair import and export trade, or even register a leather bag company for virtual transactions. It is also a common means for criminals to realize the purpose of money laundering by conducting some import and export trade that is extremely disproportionate to the target, or using the forged business performance of the leather bag company to transform the criminal income into legal business income.
It can be seen that criminals launder money in various ways, and those who make money are always looking for loopholes and weaknesses in the financial system to cover up the real source of criminal income.