WEBVTT

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Money laundering is
the illegal process

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of making money generated
by criminal activity,

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such as drug
trafficking and making

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it appear to have come
from a legitimate source.

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Money from criminal activity
is considered dirty.

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And this process launders
it to make it look clean.

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Banks are required to
report suspicious activity,

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and dealing with large
amounts of illegal cash

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is inefficient and dangerous.

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Criminals need a
way to put money

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in financial institutions.

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Yet, they can only do
so if it appears to come

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from legitimate sources.

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The process of laundering money
typically involves three steps.

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Placement puts the dirty money
into the legitimate financial

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system.

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Layering conceals
the money source

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through a series of transactions
and bookkeeping tricks.

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Integration withdraws
the now laundered money

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from the account for use.

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Criminals use a variety of
techniques to launder money.

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One of the most common is
to use a legitimate cash

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business owned by a
criminal organization.

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For example, if an
organization owns a restaurant,

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it might inflate receipts
to funnel illegal cash

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through the restaurant
into a bank account.

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These types of businesses are
often referred to as fronts.

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Online banking and
cryptocurrencies

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have made it easier for
criminals to launder money

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without detection.

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In recent years, the
prevention of money laundering

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has become an international
effort with terrorist funding

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also as a key target.

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