What is the meaning of laundering money?

Pronunciation

/ˈmʌni ˈlɔːndrɪŋ/ 🔊

Part of Speech

Noun

Definition

The criminal process of disguising the source of money that comes from illegal activities, typically by passing it through a legitimate business or foreign bank.

Examples

• The authorities suspected that the company was involved in money laundering.
• The government has implemented strict regulations to prevent money laundering.

Synonyms

• Money washing
• Illicit finance

Antonyms

• Legitimate finance
• Transparent transactions

Additional Information

Money laundering is a serious crime that can have severe legal and financial consequences. It is often associated with organized crime, terrorism, and corrupt business practices. The process typically involves three stages: placement, layering, and integration. Placement involves introducing illegal money into the financial system, layering involves disguising the source of the money through complex financial transactions, and integration involves making the laundered money appear legitimate.

Money laundering can be detected through suspicious transaction reports, unusual cash transactions, and discrepancies in financial records. Law enforcement agencies and financial institutions use various methods to prevent and detect money laundering, including customer due diligence, transaction monitoring, and reporting requirements.

The term “money laundering” originated in the 1980s, derived from the idea of “washing” dirty money to make it clean.

Usage Notes

Money laundering is often used as a verb, as in “to launder money.” It can also be used as a noun, as in “money laundering is a serious crime.”

Cultural References

Money laundering has been depicted in various films, TV shows, and books, such as “The Godfather,” “Breaking Bad,” and “The Wolf of Wall Street.”

Idiomatic Expressions or Phrases

• To launder money
• Dirty money

Related Words or Phrases

• Financial fraud
• Tax evasion

Collocations

• Money laundering scheme
• Money laundering investigation

Frequency of Use

Money laundering is a frequently used term in financial and legal contexts, particularly in the context of organized crime and corruption.

Common Misspellings

• Money loundering
• Money laundery