The Laundry Incident That Made the Saying “Money Laundering”

An organization that sets international standards for the prevention of money laundering and financing of terrorism. FATF; It blacklists countries that do not heed its recommendations, and graylists those who partially comply. Türkiye, In the fight against black money since October 2021 in the gray list is located.

in 2021 2 thousand 400 Turkish publishers approximately 10 million dollars on allegations of money laundering Twitch After the huge operation launched for the platform, this time, some phenomena via TikTok 1.2 billion lira It was announced that he was money laundering. So what is this money laundering? What does Al Capone have to do with it? What can an ordinary washing machine have in common with a crime machine?

A historical crime that existed before its name was revealed!

For economic benefit committing crimes must be at least as old as human history. For example, those who lived between 2025 and 612 BC from the Assyrians Scientists examining the remaining historical ruins and tablets have obtained the findings that the merchants who wanted to avoid the taxes to be paid to the state on the goods to be exported to Anatolia hid their income with false documents.

Expressed as ‘illegal income’ black money too Before entering the literature, it has found its place in historically written sources. The inclusion of illegally obtained income in the economic and financial system by showing it as legally obtained, in other words, giving legitimacy to black money. money laundering is defined as.

Al Capone as the father of money laundering:

Here is the origin of this phrase, An ordinary laundromat located in the USA of the 1920s. What makes that laundry extraordinary is one of the most notorious criminals in history. Al Caponeto belong to. Al Capone, who pretends to derive the income from the mafia scheme and illegal activities he has established, from the laundry businesses, is a money launderer. father of concept is counted.

Al Capone, who could not be prosecuted with this method for leaving no trace behind at the beginning, said:Two things are certain in life; death and tax.” who says Benjamin FranklinHe justifiably got caught in tax evasion. The presence of laundries at the center of all these events is referred to in the literature as ‘washing/cleaning/laundering money’.Money Laundering‘ coined the term.

More than a metaphor: Laundry

So why the laundromat? Because it works in cash, so it is difficult to track. The price and number of services provided can be easily inflated. Most importantly, it can legally introduce large amounts of black money into the financial system by splitting it into small amounts and splitting it into transactions.

In the past, black money, which was mostly tried to be exchanged and circulated in cash form, finds its place on the blockchain as well as social media platforms such as Twitch and TikTok with today’s technology. So today over 180 presumed to be money laundering methods It is possible to divide them into two groups, classical and cyber.

Money laundering methods:

First, none of these methods investment advice Let’s say it’s not and it’s a crime. You’ve already learned the first method from Al Capone above: like a live money laundromat, casino, restaurant or taxi rank. front businesses inflating income. You can also look at businesses that you have not seen customers for once and wonder how they survive in the current economic conditions.

In addition to this, another method is familiar from the Özal period in Turkish Economy 101. fictitious trade. With this method, commercial invoices are shown higher or lower than they actually are, ensuring money laundering as much as the difference.

According to these two methods, there is another way that is more risky but more spectacular. Room luxury life. Black money can be introduced into the system by investing in products such as jewelery and gold that can be easily taken abroad, or by making cash purchases of securities such as real estate, stocks and bonds, and antiques. However, let’s underline that the exchange of large amounts of money in cash in buying and selling transactions also has a triggering effect on the control mechanism.

Another method that was preferred in the past but fell out of favor with the developing control mechanisms is the ‘smurfing‘ well money launderer Smurfs method. The large amount of money laundered here is divided into the amount determined as the official limit in order to avoid the notification obligation, and this amount is deposited into the accounts of more than one person at different times in an inconspicuous manner.

One of the most well-known methods is offshore ie offshore banking. It would not be wrong to say that this is the reason for the existence of many island countries, which we are aware of thanks to Wikileaks leaks.

Having a unique and highly independent financial system independent of the controls and rules to which the traditional banking system is subject, Cayman Islands They can be considered as an excellent stop for black money as the source of the money is not asked in off-shore centers such as offshore centers.

Latest trend in money laundering: Cyber ​​laundering

Smart cards, electronic money, e-commerce and online stock market transactions… Digital financial instruments, which have diversified with increasing internet access, have eliminated the physical movement of large amounts of cash, which is the biggest problem of money launderers. Internet bankingThanks to virtual cards, easy transfer methods and 24-hour access, money laundering has become an action that can be carried out regardless of time and place.

Illegal bet sites, online NFT auctions, e-commerce donation organizations organized using websites or Twitch There are already many different methods of cyber money laundering in the form of online purchases, for example. If you’re having a hard time picturing this whole tricky process, here’s a fun commentary on this dark subject with the lines of Juan M. Urbina. by Delena D. Spann You can check out the video below.