Suspicious Activity Reporting Teach & Test

Why is Money Laundered?

Why is Money Laundered?
 
 
When a criminal activity generates substantial profits, the individual or group involved must find a way to use the funds without drawing attention to the underlying activity or persons involved in generating such profits.
 
Criminals do this by disguising the sources, changing the form or moving the money to a place where it is less likely to attract attention.

 

Therefore, criminals launder money for the following reasons:
  1. To disguise the fact that the property comes from a crime and if possible make it look as if it comes from a legal source
  2. To conceal or put some distance between themselves and the property
  3. To avoid detection of the underlying crimes
  4. To keep control of the property so that they can enjoy the benefits