The expression “money laundering” has been already mentioned in the past, mainly in the context of funds originating from criminal activity. Meaning turning “black” money obtained from committing any offenses such as: drug trafficking, protection fees, bribery and more…into “legitimate” money for which taxes had been duly allotted.
Currently we are living in an era where the expression refers to all financial activity that has illegal elements, not only in respect of funds obtained from committing crimes such as those listed above. Thus, following the expansion of the definition of the term “money laundering”, we see that money laundering is exercised not only by those “distinct” crime factors, but rather by ordinary people and businesses as well.
There are many ways to launder money making them legitimate, some more sophisticated and some simple. A common method of money laundering is the transfer of the funds to an intermediate party, who routinely handles large amounts of cash. The intermediary party will deposit these funds in his account along with the amounts coming from legitimate businesses, and transfer the sum the origin of which is dubious to its owner by check or bank transfer, deducting a certain commission.