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Money Laundering

Money laundering refers to financial transactions in which individuals and criminal enterprises attempt to disguise the proceeds of, or the sources of funds for, illicit activities by funneling them through banks or other legitimate financial institutions. Funds used in illegal activities, such as drug trafficking, insider trading, tariff and tax evasion, and so on, are said to be “dirty” and are “washed” through introduction and use in the economy. Money can be laundered through nonfinancial firms via the underground or shadow economy, so named because of opacity, and can be financial and trade based, crossing international and jurisdictional boundaries. Money laundering allows criminals to use the proceeds of illicit activities for legal economic activities, or to use the proceeds of legal economic activities to invest ...

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