I note here: there will be homework, because seriously, you’ve gotta have basics.
Do the reading. I’m not sending you at books, just articles. I’ll screenshot if it comes from a high word count source.
legal obligations such as payroll taxes
Obscuring the documentation of income from illegal actions or sources.
It’s a crime of its own, but money laundering is what makes crime pay.
Assuming Joe doesn’t get busted, this can continue indefinitely as long as they keep trusting each other.
This is kindergarten level money laundering, but it works if neither one gets greedy, stupid, or paranoid.
The small businesses most likely to be involved in this retail level of money laundering are similar: high turnover, low inventory, mostly cash based, service industries.
Above that, there’s business service laundries - trash haulers, accounts receivable financing (think payday loan for business), construction, contracting.
The clean money is the product; it’s just dirty paper when it enters the laundry, because it cannot be spent for real property.
Gold because it’s fungible - it’s hard to trace & pretty compact.
Oil, diamonds, 500€ notes & US $100s too, for same reason.
First reading assignment:
You can use this primer on the Panama Papers as a start point, but Wyoming & South Dakota LLCs are also part of the shell process, too. Often US shells are quite effective end-stage laundries.
For an investor, it makes sense to isolate a project in its own corp, because if the project goes bust, those injured can only get that project’s assets, not everything.
Set up enough nested shells in various jurisdictions? Anyone trying to sue is going to have to contend with the courts in multiple states/nations, and probably won’t have the money to keep going.
The Trumps use this *frequently*.
Alas, most of the developed world treats financial crime as a civil matter. It’s rare to see execs go to prison for wage theft, malfeasance or selling junk products.
Because the people who wrote the laws didn’t want their own profitable behavior criminalized.
I present lobbying at work. See: the NRA got legislation that makes it illegal to sue gun manufacturers for selling deadly products.
Half-laundered cash can pay that loan back. As long as you can fake a paper trail, the bank will probably take it.
See Manafort, Paul
Because Iran, Turkey, Russia & Trump are what happens when the #MoneyLaundry goes multinational.
This has been about survival for Iran — there’s some stuff every nation must import and Iran has been barred from most legitimate trade.
(The history of the US conflict with Iran is goes back to the 50s, but the regional history? Start in the Roman Empire.)
It’s like Joe’s problem above of paying his daughter’s tuition, except on a nation-state level.
The EU forced Cyprus to fix it, and Cyprus is now on their way to being less crime-y. occrp.org/en/daily/9851-…
Now Russia & Turkey didn’t used to get along. Long running bicker with occasional fist fights is the *best* characterization. (Russo-Turkish wars - en.wikipedia.org/wiki/Russo-Tur… )
But they’ve now got financial interests in common, called Cyprus.
Greece and Cyprus disagree.
They’ve been fighting over it since... at least 1571, but you could go back to Athens, Sparta & Peloponnesian Wars and few people would object.
(Arid climates — lots of war over water & the products of water.)
Dictators dream big.
They’ve become allies now mostly *because* of sanctions — USSR wasn’t a fan of religious extremists; Russia isn’t a fan of Islam; Iran doesn’t like state atheism or Russian Orthodoxy.
Russia and Iran both have reasons for resenting Saudi Arabia that are mostly about oil and/or water, but the religious divide is a huge issue.
Germany, in control of EU funds, can be shitty towards Turkey. 2 years ago: dw.com/en/turkey-ange…
But they fight over it.
Right now? It’s also water rights, which climate change is exacerbating, and oil, which is ending.
Then there’s the Trump Casino and the real estate.
You send some mooks in to *lose* money at the tables - they play stupid blackjack/craps/roulette. Their job is to lose to the house.
Which is also how you get people like Sheldon Adelson & Steve Wynn in the Trump orbit — they’ve all got laundry interests to protect.
Oil money is a major revenue source.
They’re like Joe and Bill keeping Joe’s mortgage paid and the sandwich shop open by cooperating to mutual profit.
the weird side gigs... (Vodka, water, steaks, MLMs, scam “education”... )
— the things they all have in common are:
Puffery about actual financial status.
But the complexity is also the massive amounts of money — hundreds of billions, if not trillions. While it’s mostly securitized debt, it also represents power & score keeping.
Plus a metric shit-ton of foreign aid & investment.
We’re all fossil fuel addicts.
Count how many things are made of plastic just within your line of vision. Don’t forget upholstery, carpet, laminate floors, elastic clothes, keyboards, your corrective lenses.
Yer a junkie, Harry.
It’s outside of functional scope.
It took me all afternoon to give the Twitter version. This isn’t easy.
The tools of money laundering are also the tools of business.
Money laundering exists when the financial laws are written to be weak.
Sometimes the turf war is over an acre of Las Vegas. Sometimes it’s over the entire Tigris-Euphrates watershed.
Mostly it’s fought with lawyers, but also guns.
I write stories about war and money and love and not giving into the despair of greed and hate.
Kingdom always free, NO DRM, at Smashwords