Black money is illegal income (prohibited by law). In other words, you have money, but it comes from a wrong source. If you use it, someone will question the source of the money and cannot explain it.
The common methods of money laundering are to spend and lose. In fact, the other party is also controlled by himself or herself. For example, in the futures market, if you use legitimate income and illegal income (the names are not yours) to open accounts a and b respectively, and go long and short at the same price, then the profit of a is also the loss of b, and then Closing the position at the same time will launder the black money into legitimate money, because it seems that the money earned by account a is the market money and has nothing to do with b.
Of course, if by chance, due to the operation of other people in the futures market, a loses money to b, it doesn’t matter. It’s just that the white money is washed into the black money, and it is still yours. I have to try it again and do it a few more times, and I will always succeed.
●What is "money laundering"
Simply put, "money laundering" means transferring proceeds from crimes or illegal transactions through banks and other financial institutions to cover up their illegality. nature and origin, so that it can enter the circulation market with a legal identity. Criminal activities here include drug trafficking, kidnapping, extortion, terrorist activities, smuggling, tax evasion, etc.
●Three ways of "money laundering"
According to reports, there are three main ways of "money laundering": The first is to sign a purchase contract with an overseas country and remit money. Usually, domestic and overseas cooperation is required to forge documents; the second is to remit money through underground banks; the third is to diversify investments and break up illegally obtained funds into parts.
●The origin of the term "money laundering"
The term "money laundering" first originated in the United States in the 1920s, when a financial expert from the Chicago Mafia purchased a Coin-operated washing machines, opened a laundromat. When calculating the day's laundry income every night, he added other illegally obtained illicit money into it, and then reported taxes to the tax official. After deducting the taxes he should pay, the remaining illegal income became his legal income.
Underground banks
●Why did underground banks appear?
Underground banks mostly appear in coastal areas with more developed export-oriented economies and conduct most of the illegal foreign exchange transactions. It's a business. The reason is that these enterprises have a large demand for foreign exchange, but due to the country's foreign exchange controls, the amount of foreign exchange obtained through normal channels is limited. Moreover, according to normal practice, it takes several months or even longer and cumbersome procedures from application to actual use of foreign exchange. The illegal transaction procedures of underground banks are simple and the fees are low. They usually only charge 1% to 2% commission, which is very attractive to relevant enterprises.
●How do underground banks operate?
As illegal intermediaries in financial services, the usual operating method of underground banks is that exchangers hand over RMB to underground banks within the country, and underground banks then Transfer foreign exchange into the overseas account designated by the exchanger through the overseas partner. Now, underground banks have evolved into tools for laundering illegal income, and have become an important channel for rampant capital flight in coastal areas.
There are 100 trillion U.S. dollars of "black money" in the world
According to a report by the International Monetary Fund, the amount of money laundered in the world every year has reached 400 billion U.S. dollars, equivalent to 8% of total trade. 2% of global GDP. The global "black money" has slowly accumulated and has now reached 1 trillion US dollars. As these people make more and more money from smuggling, how to spend it legally becomes a big problem.