Archive for April, 2006

Anti- what? What is money laundering?

Friday, April 28th, 2006

As the blog is about anti-money laundering, the talk about money laundering first would be relevant and worthwhile. By definition, money laundering is concealing the source, identity, and destination of illegally gotten money.

Money laundering as a term is often related to the time of American gangsters who initially appeared out of the ban on alcoholic drinks. Gangsters used several methods to hide the origins of large money got from the import and sale of alcohol as well as gambling and some other illegal activities. To hide cash, legal businesses such as laundries were opened – and so the term term “money laundering” came into use.

So the term “money laundering” appeared in the 20th century, but the concept and idea itself originated long before – at least several thousands of years ago. The necessity to hide “dirty money” was faced ages and ages ago.

Most modern countries have strict anti-money laundering laws to prevent tax avoidance, drug dealing, illegal gambling, etc.