Ways of Money Laundering

Money laundering – is the process of creating the appearance that large amounts of money obtained from serious crimes, such as drug trafficking or terrorist activity, originated from a legitimate source.
Money laundering is a way for criminals to hide the cash proceeds of their illegal schemes. There are several different types of money laundering. They include using shell companies, small bank deposits, and regular, consistent bank deposits. One of the most common ways to perform money laundering may be creating a shell company or business. This type of business is usually set up so that it is difficult to monitor cash flow. Businesses that provide services instead of selling physical goods may be able to circumvent the need to provide receipts or reports of money gained and spent. The business would typically be one in which accepting cash as a form of payment is not uncommon. Examples may include mechanics, landscapers, or hairstylists. Instead of creating a shell company, an alternative for money laundering may be to invest in a legitimate business, such as a casino or bar. The launderer can combine his illicit funds with the real income of the business or use the company's bank accounts to conceal the funds. Another method of money laundering involves making steady, consistent, legitimate deposits at a bank before the actual laundering occurs. This helps to establish a track record for the individual or business, so that when a similar amount of illicit funds are deposited, no suspicion is aroused.

Notes

to create - создавать

appearance - вероятность, видимость

amount - количество, величина, итог

to obtain – получать, приобретать

drug trafficking - оборот наркотиков, наркоторговля

legitimate source – законный источник

to proceed – продолжать, идти далее, приступать

scheme – план, проект, система

to include – содержать, включать, охватывать

to perform – исполнять, делать, представлять

to provide – снабжать, обеспечивать, предоставлять

to circumvent – обмануть, перехитрить, обойти

to accept - принимать, соглашаться, признавать

income – доход, прибыль

to arouse – пробуждать, вызывать

2. Read the text again to answer the following questions:

1. How is money laundering determined in the text?

2. What do different types of money laundering include?

3. What is the most common way to perform money laundering?

4. In what case can circumvent the need to provide receipts or reports of money gained and spent?

5. What are other alternatives for money laundering?

6. Why can the launderer conceal his funds?

7. What are other methods of money laundering?

8. What factors establish a track record for the individual or business?

3. Translate the following words and word combinations from English into Russian:

to establish, business, drug trafficking, money laundering, legitimate source, to hide, illegal schemes, different, to include, to conceal, shell companies, to monitor, physical goods, to circumvent, cash flow, receipt, payment, launderer, to combine, illicit funds, real income, bank accounts, funds, to involve, consistent, actual, individual, illicit, suspicion.

4. Find the English equivalents for the following words and phrases:

устанавливать, создавать, законный источник, количество, получать, проект, наркоторговля, обеспечивать, представлять, включать, принимать, перехитрить, соглашаться, пробуждать, прибыль, подозрение, наличные, обозревать, оплата, альтернативный, компания-однодневка, подозрительный, необычный, прятать.