Money laundering

Money laundering is the act of disguising the origin of money that has been earned via illegal activities including drug trafficking, corruption, embezzlement, or gambling by transforming it into a lawful source. There are many different definitions of what constitutes a crime in different jurisdictions. It is often considered a central operation of organised crime.

The act of conducting financial transactions with the intention of concealing the origin, recipient, or purpose of money that was obtained dishonestly is referred to as "money laundering" in US law. The concept under common law in UK law is much broader. It refers to the act of "disguising the fact that property is the proceeds of a crime or concealing the beneficial ownership of said property."

In the past, the phrase "money laundering" was only used to refer to financial activities that were associated with organised crime. Today, the definition of money laundering is frequently broadened by government agencies and international regulators such as the United States Office of the Comptroller of the Currency to mean "any financial transaction that generates an asset or a value as the result of an illegal act." This definition can refer to illegal acts such as tax evasion or false accounting. In the United Kingdom, the transaction does not even have to include money but might be for any economic gain. Courts hear cases involving money laundering done by private people, drug traffickers, corporations, corrupt politicians, members of criminal groups like the Mafia, and even governments.

As the complexity of financial crime has increased and the importance of "Financial Intelligence" (FININT) in the fight against international crime and terrorism has grown, the topic of money laundering has come to the forefront of discussions in the political, economic, and legal spheres. The act of laundering money is in and of itself unlawful, and the activities that generate the money are usually always illegal in some capacity (for if not, the money would not need to be laundered).