Here are some ideas:
https://www.tookitaki.com/blog/5-methods-that-modern-money-launderers-use-to-beat-detectionTraditional Money Laundering TechniquesCommon money laundering techniques include the following:
Structuring or Smurfing
Smurfing involves breaking down large amounts of money into smaller, less suspicious amounts. These small sums are then deposited separately to avoid drawing attention.
Shell Companies
Shell Companies are fake companies set up purely to handle money. On paper, they might seem like they're offering a service or product, but in reality, they roexist just to move money around without drawing suspicion.
Offshore Accounts
Criminals stash their illegal earnings in foreign banks. This way, the money is away from prying eyes and under different regulations, making it hard to trace.
Real-Estate Laundering
Buying property with illicit money is another method. Once bought, the property can be sold, turning the 'dirty' money into 'clean' profit from the sale.
Casino Laundering
Gamblers use illicit funds to buy casino chips, play for a bit, and then convert the chips back to money, making it seem like genuine gambling winnings.
Gambling
Using illicit money to gamble online or offline and then claiming the proceeds as genuine gambling winnings.
Bank Laundering
Sometimes even banks are involved, either willingly or unknowingly. Large transactions are disguised as genuine business deals, hiding the illicit origins.
Trade-Based Laundering
This involves over or under-invoicing for goods and services. By manipulating prices, money launderers can move money across borders without suspicion.
Cash Smuggling
As simple as it sounds, this is just physically moving cash to a different location, often across borders.
Front Companies
These are genuine businesses that also deal with illegal funds. They blend legal and illegal money to make everything seem legitimate.
Round Tripping
Money is sent out of a country and then quickly sent back, disguised as foreign investment, thus appearing clean.
Digital Money Laundering MethodsAs technology advances, so do the methods criminals use. The digital age has given rise to a set of new money laundering techniques, many revolving around the internet and cryptocurrencies. Some of the modern money laundering techniques include:
Cryptocurrency Mixing or Tumbling
Criminals use services that mix potentially identifiable cryptocurrency funds with others, making it difficult to track them.
Layering through Cryptocurrencies
Just like smurfing but in the digital world. Small crypto transactions are made to mask the actual amount being transferred.
Read More: Money Laundering via Cryptocurrencies: All You Need to Know
Peer-to-Peer (P2P) Exchanges
These are platforms where one can buy or sell cryptocurrencies directly with other individuals, often without needing to provide personal information.
Privacy Coins
Some cryptocurrencies, like Monero or ZCash, are designed to be private and untraceable. They're perfect for those wanting to hide their transactions.
Shell Companies with Cryptocurrency Accounts
Combining the old with the new: shell companies now sometimes deal solely in cryptocurrencies, making detection even harder.
Online Gambling
Just like traditional gambling but online. Criminals use illegal funds to play online games or bet, then withdraw their 'winnings,' making the money appear legitimate.
Initial Coin Offerings (ICOs) and Token Sales
Criminals invest illicit money into new cryptocurrency startups. Once the tokens or coins increase in value, they sell them, turning the illicit funds into genuine investment returns.
Microtransactions
Tiny digital transactions, especially in online games or apps, can be used to move money without raising suspicions. By making thousands of these small transactions, significant amounts can be laundered.
Digital Payment Platforms
Platforms like PayPal or other online payment systems can be used to move money. By disguising transfers as genuine payments for goods or services, illicit funds can be hidden.
Dark Web Marketplaces
The hidden parts of the internet, known as the Dark Web, have marketplaces where illegal items, from drugs to weapons, are sold. Money can be laundered through these platforms, often using cryptocurrencies.
Digital Art and NFTs
Recent trends include buying digital art or NFTs (non-fungible tokens) with illicit funds. Once their value increases, they can be sold, making the money appear as legal earnings from investments.
Online Marketplaces
Sites like eBay or Amazon can be used to sell items at inflated prices to move money. By buying these overpriced items, criminals can transfer money without raising suspicion.
Digital Identity Theft
This involves stealing someone's online identity to conduct financial transactions, thus diverting the attention from the actual perpetrator.
Blockchain Anonymizers
Services that help in making blockchain transactions anonymous, further complicating the tracing process.
