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02 Jun 2021

Fraud has been defined as wrongful deception committed by someone who has the intention of making a financial or personal gain. There are numerous ways in which someone can commit fraud and this type of crime is increasingly on the rise. If you feel that you are a victim of fraud and need a fraud solicitor then contact us at ABV Solicitors where our expert lawyers will be able to deal with your case in a professional and friendly manner.

What is money laundering?

Money laundering has become one of the most common forms of organised crime that is committed in the UK, with estimates of over £90billion being laundered through London alone. Money laundering is the process by which criminals try to legitimise large sums of illegal money. This is consequential and detrimental for the economy as a whole and is a crime that is steeply on the rise. This has led to an increase in demand for the services of a fraud solicitor. People often do not realise that money laundering is taking place, as these criminals are experts and are very intelligent and can often avoid detection. You might be wondering what constitutes illegal money. This usually arises through proceeds of drug trafficking, or terrorism funding. This money is deemed as being ‘dirty’ and the money laundering process is used by criminals to ‘clean’ the money. Your fraud solicitor will be able to explain this to you further and give you expert advice on how to identify money laundering.

What are the stages of money laundering?

Your solicitor will advise that there are three main stages to the money laundering process. The first stage is referred to as placing. This occurs when the dirty money gets placed into the financial system with the aim of washing it to make it clean. This is done by placing the money acquired through illegal activity such as theft, bribery, corruption and other such behaviours into a legitimate financial system by removing it from its source. There are many ways in which dirty money can be cleaned and this includes the blending of funds, offshore accounts, smurfing, and carrying sums of money abroad. The blending of funds occurs where businesses will mix dirty money with legitimate income. Common businesses that are involved in money laundering include salons, car wash businesses, and casinos, where customers usually pay in cash and therefore make it harder to trace illegal, dirty money.

The second stage of money laundering is known as layering which occurs when the dirty money is entered into the legitimate financial system and then the criminal covers their tracks by way of fraudulent book-keeping and record keeping.

The final stage of the money laundering process is known as integration. This is when the dirty money gets absorbed into the economy and usually occurs through real estate and housing. Once this stage has occurred it becomes difficult to establish the difference between dirty and clean money, as the money becomes integrated into the system and the launderer will be able to utilise the money without getting caught.