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DIFFERENT STEPS / STAGES OF MONEY LAUNDERING - PLACEMENT LAYERING AND INTEGRATION - FOR BEGINNERS - YouTube
Channel: The Alchemist
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in this video i am going to break down the stages聽
of money laundering and show you how it's done聽聽
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hi my name is the alchemist and in this video i'm聽
going to help you understand what money laundering聽聽
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is and how it works you might be surprised by some聽
of the things that come up in conversations about聽聽
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money laundering but don't worry we will cover聽
everything from start to finish so that when a聽聽
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conversation comes up again next time you'll know聽
exactly what they're talking about but first let's聽聽
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see what money laundering is money laundering is聽
defined as a process of disguising the source of聽聽
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money that was obtained through illegal activities聽
or from illicit funds the aim of money laundering聽聽
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is to put the money in places where it can be聽
accessed without being traced back to its criminal聽聽
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origins all nations regulate cash transactions聽
and most governments keep track of large financial聽聽
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transactions that involve more than a certain聽
amount of money money laundering seeks to hide聽聽
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the transactions and make it seem like the聽
funds came from legitimate sources instead聽聽
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now let's discuss about the different stages of聽
money laundering stage number one placement the聽聽
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first step in laundering money is to place it into聽
the financial system the risk of detection during聽聽
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this phase is high due to large deposit reporting聽
requirements and questions that naturally arise聽聽
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with any sudden influx of cash such as how did you聽
get so much to get around this the money mule is聽聽
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used the money mule is an unsuspecting player in聽
the financial system often a college student or聽聽
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other young person looking for a quick way to聽
make some fast cash who receives and transfers聽聽
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illegal proceeds to what are essentially dead聽
drops or accounts under someone else's control聽聽
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the banks in america are required to keep records聽
and report suspicious transactions the federal聽聽
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financial institutions examination council聽
ffic outlines current bank secrecy act guidance聽聽
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while finra details the anti-money laundering聽
rules that participating banks must observe聽聽
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it's difficult to launder a lot of cash at聽
one time which means that criminals have to聽聽
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be creative one way they do so is by smurfing聽
splitting up large sums into smaller ones and聽聽
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depositing them over the course of several months聽
in various accounts as opposed to making just one聽聽
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deposit with an illicitly obtain some altogether聽
this activity may involve lower level participants聽聽
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who physically make deposits for their bosses聽
respective accounts or smurfs similarly electronic聽聽
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transfers are also another option but this聽
doesn't change law enforcement agencies from聽聽
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being suspicious because it has no bearing on how聽
banks manage money internally in their own systems聽聽
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to avoid the watchful eye of regulators some money聽
launderers turn to alternative financial systems聽聽
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cryptocurrencies such as bitcoin and ivts are聽
increasingly popular laundering vectors because聽聽
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they aren't subject to regulation like fiat聽
currency banking is for example in china fei-chan聽聽
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meaning flying or transferring money has been used聽
for hundreds of years but it's now more commonly聽聽
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known there as hawala this method operates聽
internationally without leaving any paper trail聽聽
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so that government officials can't trace transfers聽
back through the system if something goes wrong聽聽
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with an account holder who may be a criminal聽
enterprise trying to disguise their actions from聽聽
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law enforcement agencies around the world stage聽
number two layering in this phase the money is聽聽
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put through a series of transactions in order to聽
create confusion these are designed by the drug聽聽
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traffickers so that it's hard for investigators to聽
follow where all their cash is gone and find out聽聽
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who they are working with the money laundering聽
process is complex and confusing but there are聽聽
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many common tactics layering involves a series聽
of financial maneuvers that slice and dice the聽聽
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initial placement in order to make it untraceable聽
these can include property transactions with shell聽聽
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companies that is the legal business entities聽
which exist only on paper high dollar purchases of聽聽
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tangible goods like cars and precious metals real聽
estate investment properties including luxurious聽聽
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homes transfers between bank accounts held by聽
multiple people at different banks or countries聽聽
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apparently there's been talk recently about how聽
some people want more transparency when it comes聽聽
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to banking offshore accounts since all these聽
companies seem like they're not doing much good聽聽
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if we can't find out who owns them or where their聽
money is coming from countries such as cyprus that聽聽
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have lacks regulations which allow account holders聽
to conceal both their identities and source of聽聽
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funds deposited into them apparently don't care聽
too much either because they claim this anonymity聽聽
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helps shield clients from personal risk without聽
preventing inward investments at any time needed聽聽
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by said clients stage number three integration聽
the final step of laundering money is integration聽聽
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which typically involves legal transactions聽
because it's the safest part in terms of avoiding聽聽
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scrutiny by authorities and other risks associated聽
with crime such as violence or incarceration聽聽
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most people think that this stage comes聽
after washing an individual's funds through聽聽
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third-party banks where they can be mixed up聽
before returning them to their original account聽聽
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in reality though there are some countries聽
like italy who have made laundry services聽聽
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illegal altogether because the process has been so聽
difficult for those trying to recoup lost assets聽聽
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from corrupt politicians an example of integration聽
is when a launderer invests in their business by聽聽
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purchasing assets with the money they received聽
from laundering a launderer could also use this聽聽
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dirty money to purchase real estate or other high聽
dollar items and then sell them off for clean cash聽聽
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flow the process may even be more complex than聽
that sometimes the only way to truly integrate聽聽
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your legal funds into legal ones via legitimate聽
investments like securities trading and sales聽聽
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would involve sending many transactions back and聽
forth between criminal entities controlled by you聽聽
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or associates under an umbrella company so it聽
becomes impossible to track which deals were made聽聽
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using what type of currency all such dealings聽
are completely transparent on paper these were聽聽
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the different stages of money laundering hope you聽
enjoyed the video please subscribe to our channel聽聽
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tell us in the comment section about how much聽聽
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you like the video and any topic that you would聽
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