money laundering
The process of concealing the origins of money obtained illegally by passing it through a complex sequence of banking transfers or commercial transactions.
The goal is to make 'dirty' money look 'clean' so it can be used without attracting the attention of law enforcement.
Word relationships
- capital washing: A less common, more metaphorical term for the same process.
- financial transparency: The full disclosure of the sources and uses of funds.
Commonly confused with
- tax evasion: Tax evasion is hiding money to avoid paying taxes; money laundering is hiding the source of the money itself.
Word family
- launder (verb): To process illegally obtained money to make it appear legal.
- launderer (noun): A person who launders money.
Collocations
- anti-money laundering
- money laundering scheme
- laundered funds
Example sentences
- "Money laundering is the process by which the proceeds of crime are disguised to conceal their illicit origin." An international organization's definition.
- "The cartel used a chain of car washes as a front for money laundering, mixing drug cash with legitimate business receipts." A description of a criminal scheme.
Memory hook
Think of putting 'dirty' bills into a washing machine to make them 'clean' and fresh. Washing dirty money to make it clean.
When not to use
Do not use for simply hiding money (like under a mattress); it must involve a process to make the money appear legitimate.
Fun facts
- The United Nations estimates that between $800 billion and $2 trillion is laundered globally every year.
Related words
Explore more words
laundering, extortion, Foreign Exchange, embezzlement, extradition, landfill
Also appears in
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