Editing Money laundering (section)

====List of methods====
Money laundering can take several forms, although most methodologies can be categorized into one of a few types. These include "bank methods, smurfing [also known as structuring], currency exchanges, and double-invoicing".<ref name="encyclopedia">[[Lawrence M. Salinger]], ''Encyclopedia of white-collar & corporate crime: A – I, Volume 1'', page 78, {{ISBN|0-7619-3004-3}}, 2005.</ref>
* [[Structuring]]: Often known as ''smurfing'', is a method of placement whereby cash is broken into smaller deposits of money, used to defeat suspicion of money laundering and to avoid anti-money laundering reporting requirements. A sub-component of this is to use smaller amounts of cash to purchase bearer instruments, such as money orders, and then ultimately deposit those, again in small amounts.<ref name="NDIC">{{Cite web |last=National Drug Intelligence Center |date=August 2011 |title=National Drug Threat Assessment |url=https://www.justice.gov/ndic/pubs44/44849/44849p.pdf |access-date=20 September 2011 |page=40 |archive-date=6 October 2011 |archive-url=https://web.archive.org/web/20111006190738/http://www.justice.gov/ndic/pubs44/44849/44849p.pdf |url-status=live }}</ref>
* Bulk cash smuggling: This involves physically smuggling cash to another jurisdiction and depositing it in a financial institution, such as an [[offshore bank]], that offers greater [[bank secrecy]] or less rigorous money laundering enforcement.<ref name="National Money Laundering Threat Assessment">{{Cite web |date=December 2005 |title=National Money Laundering Threat Assessment |url=https://www.justice.gov/dea/pubs/pressrel/011106.pdf |url-status=dead |archive-url=https://web.archive.org/web/20101017094839/http://www.justice.gov/dea/pubs/pressrel/011106.pdf |archive-date=17 October 2010 |access-date=3 March 2011 |page=33 |df=dmy-all}}</ref>
* Cash-intensive businesses: In this method, a business is typically expected to receive a large proportion of its revenue as cash uses its accounts to deposit criminally derived cash. This method of money laundering often causes organized crime and [[corporate crime]] to overlap.<ref>{{Cite web |title=Organized Crime Module 1 Key Issues: Similarities & Differences |url=https://www.unodc.org/e4j/en/organized-crime/module-1/key-issues/similarities-and-differences.html |access-date=18 December 2022 |website=www.unodc.org |archive-date=4 January 2023 |archive-url=https://web.archive.org/web/20230104032823/https://www.unodc.org/e4j/en/organized-crime/module-1/key-issues/similarities-and-differences.html |url-status=live }}</ref> Such enterprises often operate openly and in doing so generate cash revenue from incidental legitimate business in addition to the illicit cash. In such cases, the business will usually claim all cash received as legitimate earnings. Service businesses are best suited to this method, as such enterprises have little or no [[variable cost]]s and/or a large ratio between revenue and variable costs, which makes it difficult to detect discrepancies between revenues and costs. Examples are [[parking structures]], [[strip club]]s, [[tanning salon]]s, [[car wash]]es, [[amusement arcade|arcade]]s, [[Bar (establishment)|bar]]s, [[restaurants]], [[casino]]s, [[barber|barber shops]], [[DVD store]]s, [[movie theaters]], and [[beach resort]]s.
* Trade-based laundering: This method is one of the newest and most complex forms of money laundering.<ref>{{Cite journal |last=Naheem |first=Mohammed Ahmad |date=2015-10-05 |title=Trade based money laundering: towards a working definition for the banking sector |journal=Journal of Money Laundering Control |language=en |volume=18 |issue=4 |pages=513–524 |doi=10.1108/JMLC-01-2015-0002 |issn=1368-5201}}</ref> This involves under- or over-valuing [[invoice]]s to disguise the movement of money.<ref name="Achilles Heel">{{Cite book |last=Baker, Raymond |url=https://archive.org/details/capitalismsachil00raym |title=Capitalism's Achilles Heel |publisher=Wiley |year=2005 |isbn=9780471644880 |url-access=registration}}</ref> For example, the art market has been accused of being an ideal vehicle for money laundering due to several unique aspects of art such as the subjective value of artworks as well as the secrecy of auction houses about the identity of the buyer and seller.<ref name="Has the Art Market Become an Unwitting Partner in Crime?">{{Cite news |last=Has the Art Market Become an Unwitting Partner in Crime? |date=19 February 2017 |title=Has the Art Market Become an Unwitting Partner in Crime? |work=The New York Times |url=https://www.nytimes.com/2017/02/19/arts/design/has-the-art-market-become-an-unwitting-partner-in-crime.html |access-date=5 May 2018 |archive-date=6 May 2018 |archive-url=https://web.archive.org/web/20180506035316/https://www.nytimes.com/2017/02/19/arts/design/has-the-art-market-become-an-unwitting-partner-in-crime.html |url-status=live }}</ref> According to the [[National Crime Agency]], one strategy that is favored by high-net-worth individuals is specialist storage facilities. Art kept in these spaces has been used by individuals to evade sanctions and launder the proceeds of crime.<ref>{{cite web |title=UK warns of criminal sanctions evasion through artwork storage facilities |url=https://www.nationalcrimeagency.gov.uk/news/uk-warns-of-criminal-sanctions-evasion-through-artwork-storage-facilities |website=National Crime Agency |access-date=14 July 2024}}</ref>
* [[Shell corporation|Shell companies]] and trusts: Trusts and shell companies disguise the true owners of money. Trusts and corporate vehicles, depending on the jurisdiction, need not disclose their true owner.  Sometimes referred to by the slang term ''rathole'', though that term usually refers to a person acting as the fictitious owner rather than the business entity.<ref name="FATF threat assessment">{{Cite web |last=Financial Action Task Force |title=Global Money Laundering and Terrorist Financing Threat Assessment |url=http://www.fatf-gafi.org/dataoecd/48/10/45724350.pdf |access-date=3 March 2011 |archive-date=26 July 2011 |archive-url=https://web.archive.org/web/20110726050407/http://www.fatf-gafi.org/dataoecd/48/10/45724350.pdf |url-status=dead }}</ref>
* [[Round-tripping (finance)|Round-tripping]]: Here, money is deposited in a [[controlled foreign corporation]] offshore, preferably in a [[tax haven]] where minimal records are kept, and then shipped back as a [[foreign direct investment]], exempt from taxation. A variant of this is to transfer money to a law firm or similar organization as funds on account of fees, then to cancel the retainer and, when the money is remitted, represent the sums received from the lawyers as a legacy under a will or proceeds of litigation.{{citation needed|date=June 2024}}
* Bank capture: In this case, money launderers or criminals buy a controlling interest in a bank, preferably in a jurisdiction with weak money laundering controls, and then move money through the bank without scrutiny.
* Invoice Fraud: An example is when a criminal contacts a company saying that the supplier payment details have changed. They then provide alternative, fraudulent details in order for you to pay them money.<ref>{{Cite news |last=Burton |first=Tom |title=Fraudulent invoices the new trend in business scams |agency=Financial Review |url=https://www.afr.com/politics/federal/fraudulent-invoices-the-new-trend-in-business-scams-20200623-p555dn |access-date=28 October 2021 |archive-date=28 October 2021 |archive-url=https://web.archive.org/web/20211028005704/https://www.afr.com/politics/federal/fraudulent-invoices-the-new-trend-in-business-scams-20200623-p555dn |url-status=live }}</ref>
* [[Casino]]s: In this method, an individual walks into a casino and buys chips with illicit cash. The individual will then play for a relatively short time. When the person cashes in the chips, they will expect to take payment in a check, or at least get a receipt so they can claim the proceeds as [[gambling]] winnings.<ref name="National Money Laundering Threat Assessment" />
* Other gambling: Money is spent on gambling, preferably on high odds games. One way to minimize risk with this method is to bet on every possible outcome of some event that has many possible outcomes, so no outcome(s) have short odds, and the bettor will lose only the [[vigorish]] and will have one or more winning bets that can be shown as the source of money. The losing bets will remain hidden.
* Black salaries: A company may have unregistered employees without written contracts and pay them cash salaries. Dirty money might be used to pay them.<ref name="Underground Economy Issues. Ontario Construction Secretariat">{{Cite web |title=Underground Economy Issues. Ontario Construction Secretariat |url=http://www.iciconstruction.com/resources/industry_publications/underground_economy_issues.cfm |url-status=dead |archive-url=https://web.archive.org/web/20101216010105/http://www.iciconstruction.com/resources/industry_publications/underground_economy_issues.cfm |archive-date=16 December 2010 |df=dmy-all}}</ref>
* [[Tax amnesty|Tax amnesties]]: For example, those that legalize unreported assets and cash in tax havens.<ref>{{Cite web |title=Tax amnesties turn HMRC into 'biggest money-laundering operation in history' |url=http://blogs.telegraph.co.uk/finance/ianmcowie/100011790/tax-amnesties-turn-hmrc-into-biggest-money-laundering-operation-in-history |url-status=dead |archive-url=https://web.archive.org/web/20111128103750/http://blogs.telegraph.co.uk/finance/ianmcowie/100011790/tax-amnesties-turn-hmrc-into-biggest-money-laundering-operation-in-history/ |archive-date=28 November 2011 |access-date=14 June 2013}}</ref>
* Transaction Laundering: When a merchant unknowingly processes illicit credit card transactions for another business.<ref>{{Cite web |title=Merchant-based money laundering Part 3: The medium is the method - ACFCS {{!}} Association of Certified Financial Crime Specialists {{!}} A BARBRI, Inc. Company |url=https://www.acfcs.org/news/364876/Merchant-based-money-laundering-Part-3-The-medium-is-the-method.htm |access-date=2019-01-08 |website=www.acfcs.org |archive-date=1 April 2019 |archive-url=https://web.archive.org/web/20190401101454/https://www.acfcs.org/news/364876/Merchant-based-money-laundering-Part-3-The-medium-is-the-method.htm |url-status=dead }}</ref> It is a growing problem<ref>{{Cite web |title=The Growing Threat of Transaction Laundering {{!}} Legal Solutions |url=https://store.legal.thomsonreuters.com/law-products/solutions/clear-investigation-software/anti-money-laundering/the-growing-threat-of-transaction-laundering |access-date=2019-01-08 |website=store.legal.thomsonreuters.com |archive-date=8 January 2019 |archive-url=https://web.archive.org/web/20190108201017/https://store.legal.thomsonreuters.com/law-products/solutions/clear-investigation-software/anti-money-laundering/the-growing-threat-of-transaction-laundering |url-status=live }}</ref><ref>{{Cite web |title=Transaction laundering in 2019 – time to review the monitoring strategy {{!}} The Paypers |url=https://www.thepaypers.com/expert-opinion/transaction-laundering-in-2019-time-to-review-the-monitoring-strategy/776727 |access-date=2019-01-09 |website=www.thepaypers.com |language=en |archive-date=14 July 2020 |archive-url=https://web.archive.org/web/20200714025734/https://thepaypers.com/expert-opinion/transaction-laundering-in-2019-time-to-review-the-monitoring-strategy/776727 |url-status=live }}</ref> and recognised as distinct from traditional money laundering in using the payments ecosystem to hide that the transaction even occurred<ref>{{Cite web |date=2018-04-26 |title=Transaction Laundering: Growing Fraud Risk for Merchants |url=https://www.threatmetrix.com/digital-identity-blog/fraud-prevention/transaction-laundering-a-growing-fraud-risk-for-merchants/ |access-date=2019-01-08 |website=ThreatMetrix |language=en-US |archive-date=8 January 2019 |archive-url=https://web.archive.org/web/20190108201111/https://www.threatmetrix.com/digital-identity-blog/fraud-prevention/transaction-laundering-a-growing-fraud-risk-for-merchants/ |url-status=live }}</ref> (e.g. the use of fake front websites<ref>{{Cite news |date=2017-06-22 |title=Exclusive: Fake online stores reveal gamblers' shadow banking system |language=en |work=Reuters |url=https://www.reuters.com/article/us-gambling-usa-dummies-exclusive-idUSKBN19D137 |access-date=2019-01-08 |archive-date=9 January 2019 |archive-url=https://web.archive.org/web/20190109011840/https://www.reuters.com/article/us-gambling-usa-dummies-exclusive-idUSKBN19D137 |url-status=live }}</ref>). Also known as "undisclosed aggregation" or "factoring".<ref>{{Cite web |title=G2 Transaction Laundering Detection |url=https://www.g2webservices.com/acquiring/g2-portfolio-protection/transaction-laundering/ |access-date=2019-01-08 |website=G2 Web Services |language=en-US |archive-date=8 January 2019 |archive-url=https://web.archive.org/web/20190108201154/https://www.g2webservices.com/acquiring/g2-portfolio-protection/transaction-laundering/ |url-status=dead }}</ref><ref>{{Cite web |last=((raytodd2017)) |date=2018-09-17 |title=Transaction laundering and high-risk payment processors |url=https://raytodd.blog/2018/09/17/transaction-laundering-and-high-risk-payment-processors/ |access-date=2019-01-08 |website=raytodd.blog |language=en |archive-date=9 January 2019 |archive-url=https://web.archive.org/web/20190109011803/https://raytodd.blog/2018/09/17/transaction-laundering-and-high-risk-payment-processors/ |url-status=dead }}</ref>
* Online job marketplaces such as [[Freelancer.com]] and [[Fiverr]], which accept funds from clients and hold them in [[escrow]] to pay freelancers.  A money launderer can post a token job on one of these sites, and send the money for the site to hold in escrow. The launderer (or his associate) can then sign on as a freelancer (using a different account and IP address), accept and complete the job, and be paid the funds.<ref name="Wired.uk">{{Cite magazine |last=Solon |first=Olivia |date=October 21, 2013 |url-access=subscription |title=Cybercriminals launder money using in-game currencies |url=https://www.wired.co.uk/news/archive/2013-10/21/money-laundering-online |magazine=Wired |access-date=22 October 2013 |url-status=live |archive-url=https://web.archive.org/web/20131024160117/https://www.wired.co.uk/news/archive/2013-10/21/money-laundering-online |archive-date= Oct 24, 2013 }}</ref>
* Through Sports: Investigation teams have identified sport profits as a common way to launder money. In Latin America, in particular, drug traffickers are frequently found to own Soccer Clubs, and to launder money through their intermediate, by buying and selling players, selling tickets and merchandise.<ref>{{Cite news |title=As a trafficker pursued dreams of soccer glory, investigators closed in |newspaper=[[Washington Post]] |url=https://www.washingtonpost.com/world/interactive/2024/sebastian-marset-cocaine-investigation-soccer-football/ |last=Sieff |first=Kevin |date=2024-07-18 |quote='They buy a Colombian player from a very low-level soccer team and then take him to play in the Croatian Soccer League. But they sell him for 100 times or 200 times more than what he cost,' said a Colombian police official |author-link=Kevin Sieff}}</ref>