Money Laundering

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Definition of 'Money Laundering'

Money laundering is the process of disguising the origins of illegally obtained money so that it can be used in the economy. It is a serious crime that can have a significant impact on the financial system and the wider economy.

There are a number of different ways to launder money, but the most common methods involve moving the money through a series of complex financial transactions. This can make it difficult to trace the money back to its original source, and it can also help to disguise the true nature of the transactions.

Money laundering is often associated with organized crime, but it can also be used by individuals and businesses to conceal their financial activities. There are a number of reasons why people might want to launder money, including:

* To avoid taxes
* To finance terrorism
* To support criminal activities
* To conceal assets from creditors
* To evade sanctions

Money laundering is a serious crime that can have a significant impact on the financial system and the wider economy. It is important to be aware of the different methods of money laundering and to report any suspicious activity to the authorities.

Here are some additional details about money laundering:

* The Financial Action Task Force (FATF) is an international body that sets standards for combating money laundering and other financial crimes.
* The FATF has developed a list of 40 recommendations that countries should implement to combat money laundering.
* The United States has a number of laws and regulations that are designed to combat money laundering.
* The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) is responsible for enforcing the U.S. anti-money laundering laws.

If you suspect that someone is laundering money, you should report it to the authorities. In the United States, you can report suspicious activity to FinCEN by calling 1-800-552-2833 or by filing a report online at https://www.fincen.gov/.

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