NCJ Number
119840
Date Published
1989
Length
30 pages
Annotation
This description of money laundering and techniques for investigating it focuses on the use of local businesses as means for disguising the proceeds of criminal transactions.
Abstract
The analysis emphasizes that the extent of this type of money laundering is unknown and that individual businesses differ from one another in many of their activities. An introduction explains the different types of money laundering and distinguishes between money laundering through financial institutions and money laundering through otherwise-legitimate business activities. Three possible mechanisms of money laundering are described and demonstrated through their use in a hypothetical company. Methods generally used by auditors to uncover the given mechanism are also explained. The use of specific types of businesses for money laundering is also discussed, with emphasis on the intrinsic characteristics that make some businesses more suitable than others for money laundering. Enforcement strategies for local law enforcement officials are also presented. Figure and notes.