NCJ Number
125813
Journal
Asset Forfeiture Bulletin Dated: (April 1989) Pages: 1-6
Date Published
1989
Length
6 pages
Annotation
The articles in this bulletin review various issues related to money laundering.
Abstract
One article introduces law enforcement officers to basic principles involved in detecting local business money laundering. The three main methods used by local businesses to launder money are overstating reported revenue to disguise an infusion of illegal cash, overstating reported expenses to disguise money used for illicit purposes, and writing checks and depositing cash in excess of both reported revenues and expenses. Police can detect money laundering through understanding these techniques and using them to improve surveillance targeting, to develop leads among suppliers and customers, and to identify potential witnesses. Law enforcement officers need to understand money laundering from an accounting perspective as described in a second article. Because money laundering businesses must switch their operations from a cash transaction system to a business transaction system, they are vulnerable to police scrutiny. Another article discusses the Federal Equitable Sharing program and how it applies to money laundering forfeitures. The program enables the government to confiscate property obtained through illegal activities and encourages Federal, State, and local law enforcement cooperation. The factors determining an agency's participation include expenditures of money, manpower, and equipment as well as duration and intensity of involvement in the investigation. The final article in the series points out the businesses most suitable for money laundering; restaurants, bars, and night clubs generally fit the bill because of their revenues, expenses, and business features.