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๐Ÿ’ธ What is money laundering?
๐Ÿ’ธ What is money laundering?
Maral Mirshahi avatar
Written by Maral Mirshahi
Updated over a week ago

Money laundering is the process of making illegally obtained funds appear legal or legitimate. Examples of illegally obtained funds include:

  • proceeds from drug trafficking

  • human trafficking and other types of organized crime activities

  • bribery and corruption

  • fraud schemes

  • tax evasion

Money laundering involves disguising the true source of funds to make them seem like they came from legitimate sources. A key element that criminals use to launder money is to create complex transactions to hide the money's origin.

As an investment group, a crucial step to prevent money laundering is to consider:

  • Do I know the source of funds for each of my investors?

  • Have I received any documentation or proof to verify the source of funds?

  • Is the owner of the funds in a position to have obtained the funds legally?

If the answer to these questions is no, this is a red flag. ๐Ÿšฉ

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