The objective of money laundering is to get illegal funds back into a legitimate financial system.
This is not as simple as a criminal taking profits from the illegal activity,
and depositing them in the local bank. That simple path would likely result in the capture
of the criminal and the end of the activity. Inherent in the laundering process, is the
requirement that the origin and ownership of the funds or assets be concealed.
As a forensic investigator, you have to understand the intent to disconnect the funds from the
origin and owner. At the same time, the owner has to maintain control the funds, so an indirect
connection will continue to exist. Another laundering issue is the physical presence
of the cash or asset. Part of the laundering process involves storage and transport of
currency and other valuables. Earlier today, we discussed a large cash confiscation that
weighed over 4500 pounds, or over 2000 kilograms. As in investigator, it is important that you
understand what you are looking for – if you are looking for US currency, each note
weighs approximately 1 gram. Other currencies, such as the Euro, vary in weight by the bill
size and denomination. While smaller denominations are easier to disseminate back into circulation,
larger bills are easier to use when concealing large values for laundering.
To be charged with money laundering, in general, you must meet several criteria.
First, is the source of the money an SUA?
- A Specified Unlawful Act?
If the source is not a specifically listed SUA, there is no violation.
Second, does the perpetrator know the source of the proceeds? Willful blindness is not
a defense but in some cases, a party to the money laundering act does not know its source.
Third, did the money launderer conduct, or attempt to conduct a financial transaction.
Although overly simplistic, the financial transaction is the attempt move the money
in such a way to make it appear to come from legitimate sources.
Finally, did the money laundering use the laundered funds to promote the SUA, evade
taxes, avoid currency reporting requirements
or conceal the nature, source, ownership or
control of the money.
As an example consider – Joe…