What is money laundering and an example?

[deepak]

I’m watching a crime documentary and I'm a bit confused. Can someone explain what is money laundering and an example of how it works in real life?

 

[Oscar]

Money laundering is the illegal process of hiding the origin of money obtained from crimes (like drug trafficking or fraud) by making it appear legitimate.

 

[Peter]

Money laundering is the illegal process of hiding the origin of money obtained through criminal activities (like drug trafficking, fraud, or corruption) by making it appear as if it came from legitimate sources. Criminals typically move the money through multiple bank accounts, businesses, or investments to “clean” it. For example, if someone earns money from illegal drug sales and then deposits it into a fake business, such as a restaurant, to show it as regular business income, that process is considered money laundering.

 

[alexmetro]

It is when a person conceals the illegal money by making it appear like the source of his money was a regular business- such as mixing the crime money with shop cash to appear authentic. I used to believe that it simply referred to hiding cash but the fact is that it is about making the money look clean.