laundering
The process of making large amounts of money generated by a criminal activity appear to have come from a legitimate source.
It involves three stages: placement (putting the money in a bank), layering (moving it around), and integration (bringing it back as 'clean' money).
Word relationships
- cleaning: A colloquial, less formal term for the same process.
Commonly confused with
- embezzlement: Embezzlement is stealing money you were trusted with; laundering is hiding the source of stolen or illegal money.
Word family
- launder (verb): To wash; to process illegal money.
- launderer (noun): A person who launders money.
Collocations
- money laundering
- laundering scheme
- anti-money laundering (AML)
- laundering operation
Example sentences
- "The bank was fined millions for failing to prevent the laundering of cartel profits through its offshore accounts." A financial investigation.
- "Money laundering is the lifeblood of organized crime, allowing kingpins to enjoy their wealth without attracting tax audits." Explaining the concept.
Memory hook
Imagine putting dirty dollar bills into a washing machine and they come out sparkling clean. Laundering is 'washing' dirty money clean.
When not to use
Do not use for simply hiding money under a mattress; laundering requires the money to pass through a legitimate-looking system.
Fun facts
- The first actual use of the term in a legal case was in 1982 in the United States.
- Global money laundering is estimated to be 2-5% of global GDP.
Related words
Explore more words
money laundering, defraud, subterfuge, fraud, illicit, forgery
Also appears in
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