Digging Into Money Laundering
Wait I'm not doing this heinous crime, or am I?
Money has changed the world and its people so much that no one expected this. Nobody thought that it will hold such value in the future. And just like that, everyone wants to hold more money but even having enough money some go for more money and seek money laundering for it.
Money Laundering in simple words is hiding black money and using it as white money by cleaning it using the loopholes in systems.
The money earned from illegal activities, drug trafficking, or unknown sources, unknown investment, not paying taxes, corruption etc. This is mostly done by people to crowdfund illegal, criminal, and corrupt activities. It's illegal and the culprit may be charged with a heavy fine and long-term jail.
Rise In Cases
The use of online banking and Cryptocurrencies have increased money laundering activities as in Crypto it's almost impossible to track the transaction and catch the users if they have done it through decentralized wallets. And this is the major reason why no government welcomes Crypto as in that way crime lords can easily fund their activities and it would be very difficult to catch them. Electronic money laundering is the hardest challenge faced by the government nowadays.
How To Spot A Money Laundering Activity Or A Person Doing It?
Large transactions done by a bank account.
Holding more money and having more assets than their income as well as not paying tax.
Most of these types of people do their activities out of people's eyes, so if you see anyone distancing a lot from people kindly distance yourself from him/her too.
Why Is It Important To Stop Money Laundering?
To uproot the crime and illegal activities it's necessary to stop money laundering. Without any funding, those organizations will fall easily without using violence. And to avoid the money flow to only a single group or organisation.
Example
Suppose a drug dealer wants to buy a Luxury Car using his illegal money which he/she got by selling drugs. So what he does is that he already has some legal fake business set-up and he deposits that fund into that business account and as it's a business related account nobody suspects that huge transaction and after that, he buys a car with that company name using that account. Lmao, so easy.
Why Rise In Cases?
I think the cases didn't rose by such huge degree it's just that government and organisations got knowledge over this topic and have found ways to catch them.
Also, I think major reason is for selfish reasons and to crowd fund illegal activities.
Not only criminals but celebrities, and businessmen are also involved in money laundering in fact their ratio is higher than criminals, lol the amount is low only compared to those. Because of multiple businesses and NGOs they have, money laundering is a pretty easy deal for them without catching anyone's attention.
Recently I saw many actors have been accused of money laundering in India. Which made me dig deep into this topic.
And the more I dig I found even the trusted Crypto exchanges of India were involved in Money Laundering.
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Final Thoughts
It seems that no matter how much a human earns money, they will be hungry for more even if that means going on the wrong path. I can understand criminals but the well-settled celebrities and high-earning Crypto exchanges doing such things show most people are here to fill their bags without thinking of good or bad.
Money laundering flushes money from a country's economy. The process is simple as well as complex also because there are a lot of hidden layers involved in this process that we still don't know. I just explained the first layers.
So tell me how much money you have laundered through Crypto, lmao?
It's not that way bit in reality some governments put this as a money laundering act, lol.
*Any corrections over this post are warmly welcomed as I do not know have much knowledge about it.
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Well, there are countries where you have to pay taxes for having cryptocurrencies, here in Venezuela there is the law that you have to do it, but if you do not pay it, you are not committing a crime, because the government v Venezuelan still does not fully manage the laws towards cryptocurrencies.