Do you know why money laundering is a crime?

[normalice]

It's one of those things you hear about from time to time but it's necissarily a white collar crime and specifically a rich person's crime. Because of that I don't think many people really understand what it is or, more importantly, why it is illegal.

Do you know?

Yes, I know.

Not really.

Updates

1 y

So far these are only partially correct answers as they seem to assume money is primarily laundered to hide that it comes from illegal drug sales. However, most of the money that is laundered is done to conceal that it comes from a business or even government entity considered to be legit in a foreign country.

[Drewtate]

As far as I know money laundering is about turning money earned through the proceeds of crime such as Gambling, drug trafficking, embezzlement, corruption etc into legitimate money. In the past it was used to describe how organised crime turned its money earned through crime into legitimate money. Now I believe its been expanded to mean any financial transaction that produces an asset or value as the result of an ilegal act such as false accounting or tax evasion. That could involve private citizens, buisnesses, corrupt politicians, drug dealers or gangsters.

For example HSBC, in December 2012, paid a record $1.9 Billion fines for money-laundering hundreds of millions of dollars for drug traffickers, terrorists and sanctioned governments such as Iran. The money-laundering occurred throughout the 2000s.

[AviatorTom]

Money laundering is illegal for two main reasons:

1. The government can't track it and therefore isn't getting their share of taxes on it, and

2. The money is often generated via illegal means, like selling illegal drugs

[andreasderjuengere]

I see two varieties:

#1 is to make income usable that was generated from (more or less) capital crimes

#2 is the revenge labelling from the ''establishment'' for not obeying their greedy procedures in taxes or public spending.

[Anonymous]

rich people crime? the only ones i know doing it around here are the drug dealers and their buddies. maybe they are rich too I guess.

[Hispanic-Cool-Guy]

I think it's hiding money through another business front?

For example. Hiding drug money through a convenience store.