What is money laundering?

Money laundering is related to revenues from illegal sources.And so not as some replies now assume revenue which is not specified to the tax authorities.

A drug trader selling a batch of drugs for EUR 10 million has a challenge, because that money could not have been there at all.
The question that the drug trader has to answer is: how do I make this money legal?
Let’s look at some options:

  1. We break the revenues into small pieces, making it less noticeable.
    This works fine for small amounts, but 10 million might be a bit tricky.
  2. We Let it enter as legal payment
    1. We may transfer it by a fictitious company for services not provided
    2. We can get it as income from our own company, where the illegal money is “mixed” with legal income.

In this case, the reported revenues are higher if the actual income

  • A sub-construction of the above is to let circling the money in a series of companies that send each other invoices.
  • I have experienced the settlement of such a construction in distant past

  • You take the (cash) money to a casino, convert it to chips, you play some and put the chips-with Bon-again to money.
    Nicely won and spontaneously legal
  • Online gaming in which you can buy and sell business is also a method to wash white.
  • You buy an item with black money, send the item through a number of accounts and then sell the item for “white” money.

    The purpose of money laundering is not to avoid tax, it is the “legal” making of funds received from illegal sources. Criminal money.
    It is not bad for the launderer if tax is to be paid for it, this reinforces the legitimacy correctly.50% tax on money that should never have been received still yields 50% profit, and a lot less headaches.

    Let me explain with a fictitious example what money laundering is. It so fictively that I don’t know if the technique could really work, but that is of secondary importance.

    Basic, our main character, is well 15 years old and would like to take a gig of his idol, Eddy Wally (Eddy Wally has in reality died for a while, but was a striking person in the music world) the gig should cost 150 euro, but basic Get only 100 euros of drinking money (= pocket money) and he’s just that money to spend completely against that new drinking money is coming.

    Sometimes basic jobs go with his grandmother, but his father demands that he never receives a form of compensation for this.When Daddy gets to know that he is klust for money, then it swings some and I gently push myself.

    But that one time gets basic 100 euros from his grandmother, so he can go to that concert anyway.How does he get it done that Daddy doesn’t get suspicion?

    He goes to the local slot machine with 200 euros in his pocket.His rightful 100 euro spending money and 100 euro “black” money to be laundered.

    Two football teams that are daring to each other have to take it by chance.Baslieltje is 100 euro that will win A team. If he is correct, he gets 195 euros, if team A is playing equal, he gets 95 euro and if they lose, he gets nothing. He then gambled 100 that team B will win. If he is right now, he gets 195, at the same game 95 euro and at loss he gets nothing.

    At the same game Basiel gets twice 95 euros or 190 euros.10 euro loss, but no note with which he is in a possibility to explain to his father how he became extra to that 100 euro.

    In the event of a profit of 1 of the two teams, basic is 195 euro and a note with which he can prove that the extra money is a profit from permitted gambling activity.

    He has simply counted two chances on three that he can declare the extra money and “safe” to buy an expensive ticket.

    Basieltje is lucky.One of the two teams wins. Now the money is laundered that he got from his grandmother in exchange for a job and many flattering words. Because now is the money from gambling activity and no more of grandma in exchange for job work.

    Instead of waving something, basic is getting a sermon from daddy about gambling addiction and so on.Because of money laundering, the base was a maximum of 10 euros, but he could limit the costs to 5 euros.

    This is how money laundering works.The money comes from illegal activity, but it gets a lawful origin through all sorts of shadowy, yet just legal activities. The fact that there is a cost of money laundering is unfortunate but inevitable.

    Black Money does not officially exist, so you don’t have to pay tax on it.

    But buy a company, buy a house, buy a car from the dealer, that can only be with real official money.People with mountains of black money have a lot to do about making money from it, or ‘ washing white ‘. What they have about this could be seen as a kind of tax, just NOT imposed by the government and Geind, but by other black money owners.

    If you have a lot of black money and you specify a low income, but the tax shows that your road tax is paid for a Bentley, or often at Schiphol, or your children are on private education, then they will ask you some interesting questions.That’s why they want to make black money white, that you can just spend here in the Netherlands without worries.

    Pay as little tax as possible on revenues that you previously removed from the tax authorities so you can bite your income and use it to make bigger purchases.

    Earn money from which there is no tax paid by processing the books of a real company.