Explain how with construction business you're going to make it white?
Do u see south-indian movie? If u do that- i suggest see some movie . You will get the answer happily.
Best way to convert illegal money to legal money is through money laundering.
It is a way to make money which is generally generated through illegal methods like selling items on black market example drugs, child prostitution rings etc, Appear as if they came from a legitimate source.
hey do it by one of the following ways.
a) Smuggling Currency- The currency is physically smuggled to another country through various ways like hawala in india , Hundi in pakistan and chop in china.
b) change money in another form- They leverage casinos and convert their money into gambling chips or into some other form.
c)Payment of loans- They make use of money made through illegal ways for paying credit card debt and other loans
2.Layering-
This step is to obscure or remove the trail of money so that it can't be traced to its orignal source. This step is often very complex and problematic as when money leaves one holder it can easily be traced to the second holder.
so in order to overcome this mafia's leverage shell companies.
empty shell companies- These are companies without any employees or real tangible assets. They are opened by the mafia in places like switzerland , lichtenstein or luxemberg these hot laundering destinations have very stringent laws and prevent foreign and even local investigators from finding out who the company belongs to so this protects identity of the owner.
These shell companies then carry transactions across various countries and with the institutions where money was initially injected through wire transfer, by using some other financial instrument or direct cash transfer to the shell.
They may even buy goods which can then be sold locally or abroad hence making it difficult to trace and then capture these assets.
Hence in this step they are able to obscure or in some cases remove the trail which can trace the money back to the mafia.
3.Integration
This is the final step in money laundering where the money reaches back to the mafia through what appears to be legitimate source or as if the money is normal business earning. The money by this time has gone from cash then converted to different financial instruments, transacted thousand times and has been properly layered
They do integration by either lending money to themselves through their shell corporations or they use false invoices ,The sending of false export-import invoices overvaluing goods allows the launderer to move money from one company and country to another with the invoices serving to verify the “legitimate” origin of the monies placed in financial institutions.
Mafia's then often store this money by buying Real estate , Fancy cars , Art Work , Jewellery through money which appears to come from a legal source. They then sell it either to themselves through shell corporations to convert it to liquid cash or they just keep them as investments.
